DLF, the country's largest real estate company, today reported a 12.81% decline in its consolidated net profit at Rs 358.36 crore for the first quarter ended June 30.
The company had posted a net profit of Rs 411.03 crore in the corresponding period last year, DLF said in a filing to the Bombay Stock Exchange (BSE).
The consolidated sales during the first quarter, however, increased by 20.57% to Rs 2,445.82 crore from Rs 2,028.53 crore in the year-ago period, it added.
DLF said Income Tax authorities have slapped notice for nearly Rs 550 crore during the April-June period and the company has challenged the order with "appropriate authorities".
"...The company received an assessment order for assessment year 2008-09 from the Income Tax authorities, creating an additional demand of Rs 546.85 crore, out of which Rs 487.23 crore pertains to demand on account of dis-allowance of SEZ profit under section 80IAB of Income Tax Act," it added.
DLF expressed confidence that the additional tax demand would not be sustained and therefore the it has not made any provision in the financial result.
Shares of the company today closed 1.26% down at Rs 227.85 on the BSE.