Real estate giant DLF said on Thursday that it may have a liability of Rs. 300 to 400 crore to pay taxes following an audit report from income-tax authorities that recommended that a sum of around Rs. 1,200 crore be reassessed and added to its income for the financial year 2005/06.
“The company has got an expert opinion on the enhanced taxable income and is confident that this addition will not be sustained by the appellate authorities. 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 to 400 crore,” DLF told stock exchanges in a filing.
A DLF spokesperson could not be reached for comments. However, PTI quoted DLF chief financial officer Ramesh Sanka as saying that the company would approach appellate authorities within 90 days.