Hyderabad: The Telangana High Court on Wednesday heard the arguments in the petitions filed by Tech Mahindra (formerly Satyam Computers) challenging the actions of the Income Tax department, which refused to accept the revised returns filed for the years when the former chairman of Satyam had inflated revenue figures and paid taxes on fictitious income.
Tech Mahindra computers had urged the Central Board of Direct Taxes (CBDT) for reassessment of its income tax for the years 2003-2009, based on the real income generated to the company. However, the then chairman Ramalinga Raju showed fictitious incomes to Satyam computer and paid income tax based on that amount. When the Satyam scam came to light, CBI and SFIO conducted an investigation and found that around Rs 126 crore income tax had been paid on fictitious amounts.
The Tech Mahindra Company approached CBDT, which ruled out reassessment even after the Supreme Court asked it to consider the application. Following this, the rejection petition was challenged by Tech Mahindra in the Telangana High court.
Senior counsel Arvind Datar, on behalf of the petitioner, submitted that Satyam was taken over by Tech Mahindra after laborious efforts by the Government of India, which took over the company within two days after the multi-crore fraud was detected. Tech Mahindra eventually emerged as the successful bidder and it acquired Satyam by infusing approximately Rs 3000 crore.
The court adjourned the case for further submissions.
