Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: Central Excise rule to resale the machines to a new company :: due date for vat payment :: list of goods taxed at 4% :: empanelment :: TDS :: articles on VAT and GST in India :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: VAT RATES :: form 3cd :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: cpt :: VAT Audit :: ACCOUNTING STANDARD
 
 
« News Headlines »
 Is government tapping your phone?
 Income tax department to use analytics to look for discrepancies in bank accounts
 GST Council fails to break deadlock over indirect tax regime, next meet on Dec 11 and 12 to hammer out differences
 Invoking Writ Jurisdiction For Income Tax Matters
 How to file income-tax returns online
 How Income Tax Returns Are Scrutinised
 All About New Income Disclosure Scheme to make Demonetisation successful
 Your deposit may draw income tax notice
 Accepting payment under IDS 2016
 New disclosure scheme could see 50% tax and 4-year limit on cash use for unaccounted deposits
 Pay 50% tax on unaccounted deposits, or 85% if caught, says Modi government

I-T dept orders special audit of DLF accounts of FY06
February, 02nd 2009

The income tax (I-T) department has ordered a special audit of the accounts of Indias biggest real estate firm DLF Ltd for allegedly trying to lower its tax liability by understating sales for 2005-06.

After noticing the books of accounts of the company there were a number of discrepancies and we could not ascertain the true income and profits of the company, said a senior tax official.

Speaking about the special audit, a DLF spokesperson said, Income Tax department conducts special audit on thousands of companies every year and is a routine affair. Financial year 2005-06 was the first year in which PoCM method of accounting was first introduced as per Accounting Standard number 9 issued by ICAI.

While the assessment was in progress, IT department decided to institute a special audit for DLF Ltd (as a standalone entity) for fy 2005-06 to understand PoCM in a better way, he added.

He said there existed no discrepancy between the figures reported in the DLFs Red Herring Prospectus and the accounts filed with the tax department.

There are no allegations for misrepresentation in the accounts. The audit report contains only observations, which have been suitably responded, the spokesperson said.

The tax official, however, said that the companys turnover figures in its IT returns filed for the assessment year 2006-07 with the department were lower by more than Rs500 crore from the project-wise sales figure made public at the time of launching its initial public offer (IPO) in 2007.

As per DLFs prospectus filed with Sebi at the time of launching its IPO, it had said its turnover in fiscal 2006 stood at Rs1,242 crore and a profit before tax of Rs359.5 crore.

A special audit is conducted by the IT department for the accounts of any assessee, which is found to be inaccurate under Section 142 (2A) of the Income Tax Act. Under that Act, an assessing officer in the interest of revenue can order a special audit of the accounts of a company.

The official said IT department could not complete assessment of tax liability of the company as per scheduled deadline of December 2008 because of the alleged misrepresentation by DLF.

Subsequently, the assessment has been extended by another 180 days, the official added.
The department had appointed Sanjay Satpal & Co, chartered accountants as special auditor to give its assessment. The CA firm also did not respond to e-mails and repeated phone calls for its comments.

The Central Board of Direct Taxes (CBDT) also declined to comment on this specific issue, but a spokesperson said that generally in case of a special audit into the accounts of a company, the issues raised in the audit are considered by the assessing officer in his assessment order.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Content Management System developers CMS developers Content Management Solutions CMS Solutions CMS India Content Management System India CMS development India Website CMS Website Content Management India Portal CMS India CMS Outsourcing CMS Vendor Complete CMS Custom CMS Services

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions