Tax Demand Against Subsidiary Quashed for Devyani International Ltd's Sky Gate Hospitality
Sky Gate Hospitality Private Limited, a wholly-owned subsidiary of Devyani International Ltd., has successfully had a tax demand order quashed by the Income Tax Department. The resolution follows the submission and acceptance of rectification applications filed by Sky Gate concerning an earlier demand notice.The Demand Order originated from the Income Tax Department under section 143(3) of the Income-tax Act, 1961, pertaining to the Assessment Year 2024-25. The tax demand amounted to INR 59.52 million and was related to an alleged excess premium on the issuance of shares by Sky Gate during the financial year 2023-24.
In continuation of the matter, Sky Gate filed a rectification application before the Income Tax Authority under section 154 of the Income Tax Act, 1961. Following this submission, Sky Gate received intimation that the Deputy Commissioner of Income Tax issued a Rectification Order dated June 9, 2026. This order accepted the submissions made by Sky Gate and consequently quashed the initial Demand Order.
DEVYANI Stock Price Movement
Shares of Devyani International Limited shed 2.47% in trading today, closing at ₹106.49. The stock recorded a volume of 4.19 million shares during the session as it settled for the day.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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