Business Standard

Provisional I-T order to attach Satyam properties

BS Reporter  |  Hyderabad 

The has ordered attaching land and buildings of information technology (IT) consulting and outsourcing company (formerly Satyam Computer Services).

Satyam, once the country’s fourth-largest software exporter, on Friday said it had received a provisional attachment order on January 30 from I-T additional commissioner, Hyderabad, under of the Income Tax Act, 1961.

“The I-T department was not allowed to encash the bank guarantee we had furnished, hence, the order was issued. This is a provisional order and the department should seek court's permission before issuing the final notice. We are currently taking legal advice and will take appropriate action,” said a Mahindra Satyam spokesperson.

The I-T department had, last August, slapped a demand notice seeking liabilities (Rs 1,037.69 crore and Rs 1,075.73 crore for the 2002-03 and 2007-08 assessment years, respectively) under the previous management.

Subsequently, the company had deposited a bank guarantee with the department as directed by the Supreme Court.

The guarantee was valid till December 31.

The company got a breather from the Andhra Pradesh high court, which directed the bank guarantee furnished by Satyam may not be encashed by the I-T department until further orders.

Satyam’s shares closed 0.54 per cent down at 73.95 on the Bombay Stock Exchange.

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Provisional I-T order to attach Satyam properties

The income-tax department has ordered attaching land and buildings of information technology (IT) consulting and outsourcing company Mahindra Satyam (formerly Satyam Computer Services).

The has ordered attaching land and buildings of information technology (IT) consulting and outsourcing company (formerly Satyam Computer Services).

Satyam, once the country’s fourth-largest software exporter, on Friday said it had received a provisional attachment order on January 30 from I-T additional commissioner, Hyderabad, under of the Income Tax Act, 1961.

“The I-T department was not allowed to encash the bank guarantee we had furnished, hence, the order was issued. This is a provisional order and the department should seek court's permission before issuing the final notice. We are currently taking legal advice and will take appropriate action,” said a Mahindra Satyam spokesperson.

The I-T department had, last August, slapped a demand notice seeking liabilities (Rs 1,037.69 crore and Rs 1,075.73 crore for the 2002-03 and 2007-08 assessment years, respectively) under the previous management.

Subsequently, the company had deposited a bank guarantee with the department as directed by the Supreme Court.

The guarantee was valid till December 31.

The company got a breather from the Andhra Pradesh high court, which directed the bank guarantee furnished by Satyam may not be encashed by the I-T department until further orders.

Satyam’s shares closed 0.54 per cent down at 73.95 on the Bombay Stock Exchange.

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