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DLF could face additional tax liability of up to Rs400 cr

DLF could face additional tax liability of up to Rs400 cr
PTI
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First Published: Fri, May 08 2009. 12 10 AM IST

 Tax matters: A DLF building in Gurgaon. The firm on Thursday said it has bought back 7.64 million shares for Rs140.69 crore. Harikrishna Katragadda / Mint
Tax matters: A DLF building in Gurgaon. The firm on Thursday said it has bought back 7.64 million shares for Rs140.69 crore. Harikrishna Katragadda / Mint
Updated: Fri, May 08 2009. 12 10 AM IST
New Delhi: The country’s largest listed developer, DLF Ltd, on Thursday said it might have to pay an additional tax of up to Rs400 crore following a special audit of its income for fiscal 2006.
The income-tax department had last year ordered a special audit of the firm’s accounts.
Tax matters: A DLF building in Gurgaon. The firm on Thursday said it has bought back 7.64 million shares for Rs140.69 crore. Harikrishna Katragadda / Mint
“The Special (Audit) Report had recommended that the tax department (re)assess approximately Rs1,200 crore as additional income,” the company said in a filing to the Bombay Stock Exchange.
The assessing officer had issued an assessment order on 6 May “adding substantially most of the amount suggested by the Special Audit Report”, the company said.
“In an unlikely event if the said order is not reversed by the appellate authorities, then it can result in a contingent liability of approximately Rs300-400 crore,” the company said. DLF said it “has got an expert opinion on the enhanced taxable income and is confident that this addition will not be sustained by the appellate authorities”.
A special audit is conducted by the income-tax department for the accounts of an assessee that is found to be inaccurate.
The firm on Thursday also said it has bought back 7.64 million shares, less than 1% of the company’s total outstanding shares, as part of an offer launched seven months ago to arrest the slide in its share price. However, the buy-back, which started on 17 October and ended on Wednesday, accounted for 12.79% of what DLF had intended to buy.
Announcing the closure of the buy-back offer, DLF said it purchased an aggregate of 7,638,567 shares for a total amount of Rs140.69 crore. These shares were purchased at an average price of Rs184.19 a piece.
Separately, the firm also issued a final notice to shareholders for payment of the balance amount for the shares allotted to them in the company’s initial public offer two years ago.
Meanwhile, DLF Brands, the retail management arm of the real estate firm, on Thursday said its managing director Kelvin Coyle has resigned.
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First Published: Fri, May 08 2009. 12 10 AM IST
More Topics: Company News | DLF Ltd | Tax | Audit | Corporate News |