I-T slaps Rs 616.53-cr notice on Mahindra Satyam

The Income Tax Department has issued a notice to Mahindra Satyam, the new brand identity of Satyam Computer Services Ltd, to pay Rs 616.53 crore (Rs 6.165 billion) in taxes, the company said in a stock exchange filing on Tuesday.

The company said the Central Board of Direct Taxes, under Section 119 of the Income Tax Act, 1961, rejected various petitions filed by the company seeking relief for reopening of past assessments for the assessment years 2003-04 to 2008-09; determining the actual income based on the findings of investigating agencies; and granting a stay on recovery proceedings for the said assessment years.

"Notice under Section 226(3) has been issued by the additional commissioner of income tax, Hyderabad, for recovery of Rs 616,53,92,660. The company filed a writ petition before the high court of Andhra Pradesh, Hyderabad, challenging the said impugned order and seeking stay of further proceedings," the company said in a statement.

Shares of Satyam were being quoted at Rs 67.20 on the Bombay Stock Exchange on Tuesday.