Devyani International Subsidiary Sky Gate's Income Tax Demand Quashed
Devyani International's subsidiary, Sky Gate Hospitality, had a demand order of ₹59.52 million (5.952 crore) from the Income Tax Department quashed. The order was related to alleged excess premium on share issuance. Sky Gate's rectification application was accepted by the Income Tax Authority.
The demand was for a relatively small amount for a subsidiary and has now been resolved. The resolution of this litigation is unlikely to have a material impact on the overall financial performance of Devyani International.
The company's subsidiary has had a significant tax demand quashed, which is a positive outcome as it resolves a potential financial liability.
Devyani International Limited announced that its wholly-owned subsidiary, Sky Gate Hospitality Private Limited ('Sky Gate'), has received a Rectification Order from the Deputy Commissioner of Income Tax dated June 9, 2026. This order, received on June 10, 2026, quashes a previous Demand Order issued under section 143(3) of the Income-tax Act, 1961.
The earlier Demand Order, amounting to ₹59.52 million (5.952 crore), pertained to an alleged excess premium on the issuance of shares by Sky Gate during the financial year 2023-24. Sky Gate had filed a rectification application before the Income Tax Authority under section 154 of the Income Tax Act, 1961. The Income Tax Authority has now accepted Sky Gate's submissions, leading to the quashing of the demand.
This development follows a previous intimation by the company on March 25, 2026, regarding the initial Demand Order.
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Devyani International Limited filed this with the NSE as a statutory disclosure, categorised under other regulatory filings. It is a primary document, not a recommendation, and the desk marks it low impact, the band that almost never moves a portfolio on its own.
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See the model portfoliosA plain-language summary of a public exchange filing by Devyani International Limited. Read the original for the full detail.