The government today informed the Supreme Court that it will set aside its order directing scam-hit information technology (IT) firm Satyam Computer to pay Rs 617 crore as income tax and will give a fresh hearing to the firm’s plea challenging the tax demand. Attorney General Goolam E Vahanvati, appearing for the Central Board of Direct Taxes (CBDT), told the apex court that it would recall its March 10, 2011, order, demanding Rs 617 crore in tax and decide afresh on the actual tax liability of Satyam Computer, now known as Mahindra Satyam.
“We would set aside March 10, 2010 order. We would give them a hearing and pass a well-reasoned order,” Vahanvati told a three-judge bench headed by Chief Justice S H Kapadia.
The bench, however, refused the Satyam Computer’s plea to defreeze its bank account worth Rs 1,300 crore.