The Income Tax (I-T) Department has issued a fresh notice to realty major DLF even as it’s appeal against an additional tax liability imposed on it by the I-T Department is being heard. The demand for additional tax payment first came after the Institute of Chartered Accountants of India (ICAI), which sets auditing standards, revised its accounting norms during 2005-06. The change had required real estate developers and construction companies to change from the conventional way of accounting to the new method and incorporate the changes in their tax liabilities.Online GST Certification Course by TaxGuru & MSME- Click here to Join
Pursuant to the change, a special audit conducted by the I-T Department resulted in a demand for additional tax payment from DLF based on its account books for the financial year 2005-06. DLF appealed against the I-T Department’s move and informed the stock exchanges that any adverse ruling could result in an additional tax liability of Rs 200-300 crore.
DLF has termed the fresh notice from the I-T Department as a “routine follow-up”.
“This is a routine notice as a follow-up to last year. The due legal process is on and our appeal on last year’s assessment is sub judice in the I-T Department. DLF is sure of its facts and figures, which will be duly considered in the appeal,” a company spokesperson said.