Devyani International Limited announced that its wholly-owned subsidiary, Sky Gate Hospitality Private Limited, has had a demand order for INR 59.52 million from the Income Tax Department quashed. The demand, related to alleged excess premium on share issuance, was accepted as incorrect following a rectification application filed by Sky Gate. This favorable outcome was communicated via a Rectification Order dated June 9, 2026.
Tax Demand Resolution for Sky Gate Hospitality
Devyani International Limited has provided an update regarding a tax demand issued to its wholly-owned subsidiary, Sky Gate Hospitality Private Limited (‘Sky Gate’). Earlier, on March 25, 2026, the company had informed stakeholders that Sky Gate received a Demand Order from the Income Tax Department. This order, issued under section 143(3) of the Income-tax Act, 1961, pertained to the Assessment Year 2024-25 and involved an alleged excess premium on the issuance of shares by Sky Gate during the financial year 2023-24. The demand amounted to INR 59.52 million.
Rectification Order Upholds Sky Gate’s Position
In continuation of the previous intimation, Devyani International Limited has now reported a significant development. Sky Gate Hospitality filed a rectification application before the Income Tax Authority under section 154 of the Income Tax Act, 1961. Following this application, Sky Gate has received an intimation that the Deputy Commissioner of Income Tax, via a Rectification Order dated June 9, 2026 (received on June 10, 2026), has accepted the submissions made by Sky Gate. Consequently, the original Demand Order has been quashed.
The company reaffirms that the detailed disclosure as required under relevant regulations, including SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026, was already submitted in the earlier intimation dated March 25, 2026.
The company requests that this update be taken on record.
Source: BSE
