In a development that could impact its valuation ahead of the merger with Tech Mahindra, Mahindra Satyam has received an attachment notice from the Income-tax Department in the Rs.617-crore tax assessment row with the company.
This tax demand pertains to 2002-03 to 2007-08 when the company witnessed a massive financial fraud during the regime of B. Ramalinga Raju, the founder Chairman, who was facing trial. The company received the notice two days before it announced financial results for the third quarter.
The company shares, which rose after it posted Rs.308-crore net profit, fell by 0.54 per cent on Friday on the BSE to end at Rs.74.85. “We have received the notice from the I-T Department for attaching land and buildings of the company under Section 281 B of the Income-tax Act, 1961.
“We are exploring legal options to challenge this,” the company informed the Bombay Stock Exchange on Friday.
- Business Line
