Mahindra Satyam gets Rs 2,114 crore tax notice

The Income-Tax department has ordered Satyam Computer Services,currently Mahindra Satyam,to pay a tax of Rs 2,114 crore for assessment years 2002-03 and 2007-08. The Additional Commissioner of Income Tax has sent draft of proposed assessment orders together with draft notices to the company.

In a release to the stock exchanges,the company said that it has received the notice from the Additional Commissioner of Income Tax of draft of proposed assessment orders together with draft notices of demand under the Income Tax Act,1961,for Rs 1,037.69 crore and Rs 1,075.73 crore for assessment years 2002-03 and 2007-08,respectively.

“The draft of the proposed assessment orders proposes inter-alia,disallowance of tax exemptions/deductions claimed by the company. However,it does not exclude fictitious income wrongly offered to tax by the earlier management. The existence of fictitious sales and fictitious interest has even been confirmed by other government of India agencies,’’ the notice said. FE