Mahindra Satyam Moves ITAT challenging CIT order rejecting application u/s. 154 in respect of foreign tax credit

Last week, Mahindra Satyam had disclosed several tax matters with respect to the company that it had acquired. It has now moved the tax tribunal for grant of relief in one of the matters, reports quoting Central Board of Direct Taxes (CBDT) sources. Mahindra Satyam has moved IT Appellate Tribunal, Hyderabad challenging income tax order with reference to Sec 154 rectification which pertains to foreign tax credits.

It is learnt that Income Tax Commissioner has rejected Mahindra Satyams appeal for rectification stating that it was beyond their jurisdiction.Sources say that tax demand is not stayed yet as amount is not disclosed.

In a separate case, IT department has rejected Satyams tax refund claim under section 264. Satyam had earlier appeal for re-computation of taxable income for four years. However, that appeal is pending with CBDT and not disposed so far. It is learnt that IT department will levy tax claim on Ramalinga Raju undeclared income.