We strongly believe such firms may be involved in creating nuisance and indulging in efforts to defame us,'' said a company release. The release added that the deals with film makers were for generating revenue through fund-based lease finance operations. The depreciation benefits were incidental. It further claimed that VLS Finance was among the few NBFCs to have pre-paid its public deposits.

The release, further said that VLS' transactions had been assessed by the IT authorities and no iregularity was found. ``It is surprising how such allegations have been attributed to VLS Finance. Sale and lease back deals havebeen a very normal business transaction.''

The release also stated that the company was not aware of any forum by the name of `VLS Finance Investors' Forum, which has levelled the allegations. VLS Finance further stated that it has not received any notice from the IT department. However, senior oficials from the IT department had confirmed the issuance of a notice directing the company to file fresh returns to ensure whether it had evaded taxes or not.