The Supreme Court on Thursday directed that the order of the Central Board of Direct taxes (CBDT) with regard to its multi crore tax demand from Mahindra Satyam Computer will not come into effect for two weeks.

The order of the Apex Court headed by Chief Justice of India SH Kapadia, Justice B. Sudershan Reddy, and Justice KS Panicker Radhakrishnan came in an application filed by the company seeking the Court’s direction in the matter. The Bench further added that the IT firm can challenge the CBDT order if needed.

The Central Board of Direct Taxes (CBDT) had earlier demanded Rs 617 Crore from Mahindra Satyam as income tax liable to be paid by the company for the years 2003 to 2009. Satyam had moved the Andhra Pradesh High Court, where the court directed the company to issue bankers' cheques worth Rs. 350 Crore to the CBDT as well as furnish an unconditional bank guarantee worth Rs. 267 Crore in favour of the IT authorities.

The Andhra Pradesh High Court had frozen the company's bank accounts after the software firm failed to pay the tax demand of Rs. 617 Crore.

On 15 April, the Apex Court had directed Mahindra Satyam Computer to file a fresh petition within two weeks before the Central Board of Direct Taxes (CBDT) for re-assessment of the Rs 617 Crore tax demand levied upon the IT firm.

The same Bench of Apex Court had directed the CBDT to hear the matter exhaustively and dispose of the case. Additionaly, the Chairman of Satyam Computer was also directed to file an undertaking by 18 April 2011 with the Registry of the Supreme Court to furnish Bank Guarantee from a Nationalised Bank for a sum of Rs.617 Crores on or before 25 April 2011 to start using the bank account which was earlier frozen by an order of the Andhra Pradesh High Court.