Tech Mahindra Limited Vs ACIT (ITAT Hyderabad)
ITAT Hyderabad directs AO to reassess Satyam Computer Services [Now, Tech Mahindra Limited] for the Assessment Year 2003-2004 to 2008-2009 in light of the judgement of Hon’ble High Court for the State of Telangana at Hyderabad.
Facts- After the statement of Shri B. Ramalinga Raju [Satyam Computer Services] on 07.01.2009 admitting to falsifying corporate accounts and confessed to fudging sales and interest income for many years and on the basis of the said confession, the Government of India, on the same day intervened by filing a petition before the Company Law Board to suspend the existing Board and to take-over the company affairs.
Thereafter, Tech Mahindra Limited participated in a competitive bidding process which was approved by Retired Chief Justice of India and Company Law Board. Subsequently, the petitioner filed an application before the Company Law Board requesting for additional time for preparation of financial statements and submission before the appropriate authorities. The Company Law Board allowed application filed by the assessee.
Thereafter, the appellant-company has filed petition before the Central Board of Direct Taxes u/sec.119 of the Income Tax Act, 1961 seeking permission to file revised returns along with re-casted books of accounts as an 31.03.2009. The application filed by the appellant-company has been rejected by the CBDT vide order dated 11.07.2011. The appellant-company has challenged the order passed by the CBDT and filed a petition before the Hon’ble High Court. The Hon’ble High Court set-aside the order passed by the CBDT dated 11.07.2011 and also held that the assessments for the assessment years 2003-2004 to 2008 2009 are illegal and violation of Article 265 of the Constitution of India and also void abinitio. The Hon’ble High Court for the State of Telangana at Hyderabad further directed the respondent nos.1 and 3 to re-quantify/ re-compute the income of the petitioner-company by conducting a fresh and appropriate assessment for assessment years 2003-2004 to 2008-2009 based on the revised financial statements of the petitioner-company for the year ending 31.03.2009.
