Income-tax department directed to recompute Tech Mahindra’s income based on restated accounts which excluded fictitious income
Hyderabad: The Telangana High Court gave relief to Tech Mahindra (formerly Satyam Computer Services Ltd) in relation to its request for re-quantifying of income-tax for the income earned for assessment years 2002-03 to 2008-09.
The court allowed the petition filed by Tech Mahindra, which had challenged the action of the income-tax department which had refused to accept the revised returns filed for those years where the former chairman of Satyam Computers had inflated the revenue and paid taxes on fictitious income. Tech Mahindra had sought fresh and proper assessments based on the actual income of Satyam Computers.
A division bench comprising Justice P. Sam Koshy and Justice Nandikonda Narsing Rao on Friday pronounced the order in the batch of petitions filed in this regard in the years 2011 to 2013.
The court held that the assessment orders were illegal and violative of Article 265 of the Constitution and void ab initio. The income-tax department was directed to recompute Tech Mahindra’s income based on restated accounts which excluded fictitious income. The Court permitted Tech Mahindra to file revised returns based on audited financials and the income-tax department was directed to conduct proper reassessment excluding the fictitious income.
