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Our Bureau

New Delhi, Feb. 5 The income-tax department is investigating into various aspects of the Satyam Computer Services scandal including the one on possible fictitious or inflated claim of tax deduction at source (TDS) relating to non-existing interest accrued on probably conjured up bank deposits.

The investigations have not yet been completed, official sources said.

The ex-Chairman of the fraud-hit Satyam Computer Services, Mr Ramalinga Raju, had on January 7 disclosed that the balance sheet of the company as on September 30, 2008 carried among other things an “accrued interest of Rs 374 crore that is non-existent”.

This has prompted the income-tax department to look into the aspect of whether any fictitious or inflated TDS claims were made by the company in the previous years on any non-existing fixed deposits.

The investigations including the TDS claim aspect are currently on and no conclusion has been reached, official sources said. It was made clear that the question of reopening assessments will arise only when investigations are completed.

Under the income-tax law, the tax department can reopen assessments for the past six years. If any tax implications on account of the Satyam scandal are in the department’s favour, then the tax department could always reopen any assessment for the assessment years 2002-03 to 2007-08, tax experts said.

More Stories on : Income Tax | Corporate Governance | Satyam Computer Services Ltd

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