MSatyam slapped Rs 616 Crore tax notice

The Income Tax Department has issued a notice to Mahindra Satyam, the new brand identity of Satyam Computer Services Ltd, to pay Rs 616.53 Crore in taxes, the company said in a stock exchange filing.

At 11:00 am, shares of the company were trading 0.82 percent at Rs 66.50 on the Bombay Stock Exchange.

The company said the Central Board of Direct Taxes, under Section 119 of the Income Tax Act, 1961, rejected various petitions filed by the company seeking reliefs for reopening of past assessments for the Assessment Years 2003-04 to 2008-09; determining the actual income based on the findings of investigating agencies; and granting a stay on recovery proceedings for the said assessment years.

"Notice under Section 226(3) has been issued by the Additional Commissioner of Income Tax, Hyderabad, for recovery of Rs 616,53,92,660. The company filed a writ petition before the Hon'ble High Court of Andhra Pradesh, Hyderabad, challenging the said impugned order and seeking stay of further proceedings," the company said.