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I-T department orders audit of DLF accounts

I-T department orders audit of DLF accounts
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First Published: Thu, Feb 26 2009. 12 10 AM IST
Updated: Thu, Feb 26 2009. 12 10 AM IST
New Delhi: The income-tax department has ordered a special audit of accounts of DLF Ltd for the assessment year 2006-07, minister of state for finance S.S. Palanimanickam said in Parliament on Wednesday. The audit report in the case of DLF was received on 31 December, he said.
DLF said no action is being taken against the company. An emailed statement from DLF said the financial year 2005-06 was the first year in which DLF revised accounting standards as prescribed by the nstitute of Chartered Accountants of India because it had to go public. As per these standards, DLF started using Percentage of Completion Method for recognizing revenues, and consequently, profits. This accounting change led to DLF recognizing an additional profit of Rs314 crore, resulting in taxable income of Rs334 crore. DLF paid tax of Rs114 crore on the same, the statement said. “The income tax department took help of an external agency to examine the percentage of completion method conflict, the agency has sent recommendations to the income tax department and we have got 120 days to reply to these queries which were sent sometime in January,” a DLF spokesperson said.
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First Published: Thu, Feb 26 2009. 12 10 AM IST