The income-tax department has sought Rs 1,180 crore more tax from DLF, the countrys largest real estate developer, and its 22 subsidiaries for the assessment year 2009-10.
The group, which has filed an appeal with the appropriate appellate authorities, has not made any provision toward this demand in DLFs third quarter result. The tax demand was raised in the previous quarter.
There are various companies involved in these cases and each of these entities have filed an appeal with their competent authorities in different locations, Ashok Tyagi, companys chief financial officer said. Based on expert advice we have a very strong case in most of these claims, he added.
The company has made a significant investment in acquiring fresh land that has resulted in exceeding the capital expenditure by Rs 500 crore for the third quarter, said another company official. Due to fresh capital investment in land and the delay in new launches, net debt has witnessed a marginal rise in the quarter, he said. At the end of second quarter, the company had a debt of around Rs 20,000 crore.
DLF on Monday reported marginal decline in consolidated net profit at Rs 465.67 crore for the quarter ended December 31, 2010. The company had posted a net profit of Rs 467.89 crore in the corresponding period previous fiscal, a company statement said. The consolidated sales during the quarter, however, increased by 22.42% to Rs 2,479.93 crore from Rs 2,025.77 crore in the year-ago period, it added.