SC orders status quo on Rs 617 crore tax demand from Satyam

SC orders status quo on Rs 617 crore tax demand from Satyam

The Supreme Court on Wednesday ordered the Central Board of Direct Taxes (CBDT) to maintain status quo on its demand for Rs 617 crore income tax from Satyam Computer, while asking for a list of the actual liabilities of the scam-hit information technology (IT) firm.

A three-judge bench headed by Chief Justice S H Kapadia directed the CBDT to submit a chart by Friday showing the actual income and tax liabilities of Satyam Computer, now known as Mahindra Satyam.

The bench also hinted that the IT firm will have to pay a part of the actual income tax demand raised by the CBDT.

The apex court directions came over a petition filed by Satyam Computer challenging an order of the Andhra Pradesh High Court, which had last week directed it to pay Rs 350 crore in cash and submit a bank guarantee of Rs 267 crore to the tax authorities.

The Income Tax Department had raised the tax demand on account of the fudged income statements shown by the company since 2002 during the regime of disgraced founding Chairman B Ramalinga Raju.