Taxman says DLF net understated by Rs 400 crore

DLF, the largest Indian realtor by market capitalisation, has once again received a letter from the special auditor commissioned by the income tax (I-T) department regarding understatement of profit. The auditor said DLF has understated profit by Rs 400 crore for the financial year 2008.

Earlier, in May 2009, the special auditor had alleged that realtor has understated profit of Rs 1,200 crore, after the audit financial year 2005-2006. DLF had taken expert opinion for the May 2009 order and the company had clarified to the exchanges that in an unlikely event if the said order is not reversed by the appellate authorities then it can result in a contingent liability of approximately Rs 300 crore to Rs 400 crore.

However, Rajeev Talwar, DLF's group executive director said that this is old news and there is no new development. Many on the street remains confused on whether this is an old case or a new one. The uncertainty showed in the DLF stock, which fell 5.4% on the fallout of the news.