Devyani International Receives Demand Order from Income Tax Department
Devyani International Limited announced today, March 26, 2026, that its wholly-owned subsidiary, Sky Gate Hospitality Private Limited, has received a Demand Order from the Income Tax Department. The order, received March 25, 2026, pertains to the Assessment Year 2024-25 and relates to an alleged excess premium on the issuance of shares by Sky Gate during the financial year 2023-24.The total demand outlined in the order is INR 59.52 million.
According to Devyani International, the Demand Order is not expected to have a material impact on the company's financial, operational, or other activities. Sky Gate is currently evaluating the order and intends to take appropriate steps, including the possibility of filing an appeal with the relevant authority.
| Particulars | Description | |
|---|---|---|
| S. No. | Name of the authority | Assessment Unit, Income Tax Department |
| Nature and details of the action(s) taken or order(s) passed | Receipt of demand order by Sky Gate Hospitality Private Limited, a wholly-owned subsidiary of the Company ('Sky Gate') , under section 143(3) of Income-tax Act, 1961 for the Assessment Year 2024-25 for a total demand of INR 59.52 Million. | |
| Date of receipt of direction or order, including any ad-interim or interim orders, or any other communication from the authority | March 25, 2026 | |
| Details of the violation(s)/ contravention(s) committed or alleged to be committed | Demand Order under section 143(3) of Income-tax Act, 1961 for the Assessment Year 2024-25 regarding the alleged excess premium on issuance of shares by Sky Gate during the financial year 2023-24. | |
| Impact on financial, operation or other activities of the listed entity, quantifiable in monetary terms to the extent possible | There is no material impact on financial, operation or other activities of the Company on account of the above Order. Sky Gate is in the process of evaluating the Demand Order and shall take necessary steps available under applicable law, including filing of appeal with the Appellate Authority. |
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