Mahindra Satyam is all set to move to Andhra Pradesh High Court challenging the Rs 2,114 crore income tax demand raised by the I-T Department.
The Income Tax Department had demanded Rs 2,114 crore tax on IT company Mahindra Satyam after disallowing exemptions claimed by the company. The company had received draft notices raising tax claims of Rs 1,037.69 crore and Rs 1,075.73 crore for assessment years 2002-03 and 2007-08, respectively.
“We will definitely move to court that is for sure. The tax was levied on fictitious income. It is not justified. Even the government is aware that the income was fictitious during that period,” Mahindra Satyam spokesperson said.
Mahindra Satyam has been seeking the return or adjustment of taxes paid on overstated income when infamous founder Ramalinga Raju was the chairman of Satyam computer. Tech Mahindra had acquired Satyam after a multi-crore rupees fraud in the company came in public notice in January, 2009. After the acquisition, the company was re-named Mahindra Satyam.
