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New Delhi, April 19 (PTI): The income tax department may conduct a special audit of the accounts of scam-tainted Satyam Computer Services to determine the tax liability of the IT firm.
“We are considering a special audit of the books of Satyam. An order for the special audit is likely to be passed in a week,” a tax official said.
The income tax department can order a special audit of the accounts under section 142 (A) of the income tax act in the interest of revenue.
Under the special audit, the account books are re-examined by the auditors appointed by the department.
A spokesperson for the Central Board of Direct Taxes declined to comment on the issue.
“A special audit for Satyam is the only viable option,” said Aseem Chawla, partner of Amarchand Mangaldas, the law firm which was brought in by the government-nominated board of Satyam Computer to facilitate the acquisition of the company.
Board meet
Tech Mahindra, the new owner of Satyam Computer, will have its first official interaction with the Satyam board tomorrow after it obtained the Company Law Board’s approval for acquiring a majority stake in the company.
All existing Satyam directors, senior Tech Mahindra officials and Ananda Mahindra, chief of Mahindra Group, will take part in the board meet in Hyderabad tomorrow.
Tech Mahindra can acquire up to 70 per cent stake in Satyam through an open offer, but cannot take the firm private.
The share subscription agreement between the two parties caps Tech Mahindra’s maximum holding in Satyam at 70 per cent through a preferential allotment of 31 per cent equity and a public offer, and bars the owner from delisting Satyam shares in the US or taking it private.
ICAI order
Apex accounting body ICAI said all listed companies would be audited by firms which had been issued certificates by its peer review board from April 1, 2009.Over 1,200 firms have been selected for this review.
It also said the financial statements of companies coming out with IPOs need to be certified by the peer review board.
