The company said it is challenging the orders with appropriate authorities and hopes that these demand notices will be revoked as SEZs enjoy tax benefits
New Delhi: Realty major DLF has said the Income Tax (I-T) authorities have slapped additional tax notices for over Rs1,700 crore pertaining to 2008-09 assessment year after being disallowed its profits in special economic zone (SEZ) projects, reports PTI.
The company said it is challenging the orders with appropriate authorities and hopes that these demand notices will be revoked. SEZs enjoy tax benefits.
“Subsequent to the quarter ended 31 March 2011, the company received an assessment order for AY 2008-09 from the Income Tax authorities, creating an additional demand of Rs546.85 crore.
“Out of this Rs487.23 crore pertains to demand on account of disallowance of SEZ profit under section 80IAB of Income Tax Act,” DLF said in a note in its annual result.
“During the year, the group had also received similar demands on account of disallowance of SEZ profits in two of its subsidiaries totalling Rs1,156.19 crore,” it added.
Without naming the subsidiaries, the company said those firms are challenging the orders with appropriate authorities.
“Based on the advice from the independent tax experts, the group is confident that the additional demand so created will not be sustained,” the statement said, adding it has not made any provision for payment of these demands in consolidated financial results.
In 2009, DLF had de-notified four IT/ITeS Special Economic Zones in Gujarat, West Bengal, Orissa and Haryana in the wake of slowdown in office space demand.
Meanwhile, in a different case relating to I-T for the assessment year 2006-07, DLF got a relief of Rs409.60 crore after it had approached CIT (Appeals).
“As per this appeal order, the appellate authority has given significant relief under the various items resulting in reducing the demand from Rs482.74 crore to Rs73.14 crore,” the company said.
DLF said it has further filed an appeal before the ITAT Delhi against the appellate’s order for the remaining Rs73.14 crore.
Man Industries reported over 38% dip in its standalone net profit at Rs18.62 crore for the quarter ended 31 March 2011 due to settlement of Rs109.49 crore for a case lost in the US
Leading pipe manufacturer Man Industries reported over 38% dip in its standalone net profit at Rs18.62 crore for the quarter ended 31 March 2011 due to settlement of Rs109.49 crore for a case lost in the United States of America.
The company had reported a net profit of Rs30.17 crore during the corresponding quarter of 2009-10.
Total income of the company also declined marginally by 5.65% during the quarter at Rs442.13 crore compared to Rs468.62 crore of January-March quarter of FY10, it said in a filing to the Bombay Stock Exchange.
For the full year, the standalone net profit of the company rose by over 37% at Rs91.97 crore, while its total income during the year was Rs1,644.15 crore registering a growth of about 7%, the filing added.
"During the quarter we received Rs55.86 crore towards excise rebate following rejection of Central Excise department's case in Supreme Court. This has been added as income in the results. For full year, the excise rebate was about Rs63.09 crore," Man Industries Chairman RC Mansukhani said over the phone.
He added that however, the company lost a case in United States court in March, which awarded about $23.92 million (Rs109.49 crore) in damages and "this has been written off as liquidated damages, which affected our profitability during the January-March quarter".
Mansukhani also said that the company currently has an order book of about Rs1,500 crore and all of them are under execution.
"Besides this, the company is aiming to secure orders worth Rs1,000 crore during the current fiscal," he said.
Mansukhani also said that there is no fund raising plan for the time being and the focus is on to achieve maximum utilisation from existing capacities.
Asked about the spat with his brother and another promoter of the company, JC Mansukhani (JCM), the Man Industries chairman said that the company Board found him guilty on many counts and decided to remove him as managing director of the company.
Yesterday, the company, in a statement, had listed several charges against JCM like being indulged in activities like insider trading and misappropriation of funds.
Accordingly, JCM was removed from his post and duties on 19th May by the company, the statement had said.
The Man Industries is among the leading manufacturer and exporter of large diameter carbon steel line pipes for various high pressure transmission applications for gas, crude oil, petrochemical products and potable water.
On Wednesday, Man Industries ended 3.83% up at Rs133 on the Bombay Stock Exchange, while the benchmark Sensex declined 0.91%.
Airtel Africa has also outsourced its core customer service functions, including call centres and back office operations, to IBM, Tech Mahindra and Spanco
Telecommunications major Bharti Airtel has entered into a five-year deal with mobile software maker Comviva for providing value-added services across Airtel's operations in 16 African countries.
"By handing over the management of operations to Comviva, we can enhance efficiencies in our operations and bring a closer focus on marketing initiatives that will help drive usage and engagement levels across our customer base," the Airtel Africa CEO (International) and Joint Managing Director, Mr Manoj Kohli, said.
In addition to managing all the VAS nodes, Comviva will also manage the complexities associated with the emergence of multiple technologies, different standards, myriad applications and content, Bharti Airtel said in a statement.
The financial details of the deal were, however, not disclosed.
Commenting on the deal, the Comviva CEO, Mr Manoranjan Mohapatra, said: "This is a landmark deal for Comviva, as we will manage all VAS nodes across Airtel operations in 16 countries in Africa."
Meanwhile, Airtel Africa has also outsourced its core customer service functions, including call centres and back office operations, to IBM, Tech Mahindra and Spanco.
In September, 2010, the company also selected IBM to manage its IT systems to power the mobile communications network across the continent, the statement added.
On Wednesday, Bharti Airtel ended 0.14% down at Rs369 on the Bombay Stock Exchange, while the benchmark Sensex declined 0.91%.