Hyderabad: The Telangana High Court on Friday, January 31, granted relief to Tech Mahindra in the re-assessment of income tax for the income earned for assessment years 2002-03 to 2008-09.
The court allowed the petition filed by Tech Mahindra after the company challenged the action of the income-tax department for refusing to accept the revised returns filed for the above-mentioned period where the former chairman of Satyam Computers had inflated the revenue and paid taxes on fictitious income.
Tech Mahindra had sought fresh and proper assessments based on the actual income of Satyam Computers.
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A division bench comprising Justice P Sam Koshy and Justice Nandikonda Narsing Rao pronounced the order in the batch of petitions filed regarding this issue in the years 2011 to 2013.
The Telangana High Court held that the assessment orders were illegal and violative of Article 265 of the Constitution and void ab initio. The income-tax department was directed to recompute Tech Mahindra’s income based on restated accounts which excluded fictitious income.
The court allowed Tech Mahindra to file revised returns based on audited financials, while the income-tax department was directed to conduct proper reassessment excluding the fictitious income.
