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).

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 Section 281B 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.