Satyam to resubmit appeal to CBDT

After being criticised by the Supreme Court for ‘showing arrogance’ in its letter, Mahindra Satyam, the brand identity of Satyam Computer Services Ltd, will refile its appeal to the Central Board of Direct Taxes (CBDT) on Friday with regard to the disputed Rs 617-crore income tax demand.

"We will redraft our letter and submit it to the CBDT," a Satyam spokesperson told Business Standard today.

On Monday, Chief Justice S H Kapadia had slammed the draft suggestion of the company. The letter was written to the CBDT following the offer of the attorney general last week that the earlier demand would be withdrawn and the company given a hearing before modifying the income tax demand of Rs 617 crore, allegedly owed by the company.

However, the company misinterpreted the stand of the revenue department and wrote to the authorities in an authoritative tone, using the word “shall” several times. This infuriated the three-judge Bench. The attorney general also took strong exception to the tenor of the letter.

Senior counsel Harish Salve and A M Singhvi, representing the company, clarified they were not aware of the letter and apologised.

The chief justice remarked that “the present generation is very competitive but is crippled with arrogance.”

The matter has been adjourned to Friday. Following this, the Hyderabad-based IT firm has decided to redraft its letter and submit IT to the CBDT.