DLF Q4 net falls 39% gets Rs 457-cr tax demand notice

DLF, India’s largest realty company, on Wednesday said its March quarter consolidated net profit fell 39 per cent on higher interest outgo and it had received an additional tax demand of Rs 457.4 crore from the Income Tax (I-T) Department for the 2009-10 assessment year (AY).

“Subsequent to the quarter ended March 31, the company received an assessment order for AY 2009-10 from the I-T authority, creating a demand of Rs 457.39 crore, of which Rs 355.24 crore pertains to demand on account of disallowance of SEZ (special economic zone) profits under section 80IAB of the I-T Act,” DLF said in a note.

DLF has filed appeals before the appropriate appellate authorities against the assessment orders and expects that the additional tax demand would not be sustained.

Consolidated net profit in the fourth quarter fell to Rs 211.7 crore, from Rs 344.5 crore in the year-ago period. Total income from operations declined marginally to Rs 2,616.8 crore, from Rs 2,683 crore. Interest outgo increased to Rs 603.9 crore, from Rs 455.7 crore in the year-ago period.

Net profit for 2011-12 fell by 27 per cent to Rs 1,200.8 crore, from Rs 1,639.6 crore in the previous year. Income from operations rose to Rs 9,629.4 crore, from Rs 9,560.6 crore.