Devyani Intl Subsidiary's ₹59.5M Tax Demand Quashed

Devyani International Ltd announced that its wholly-owned subsidiary, Sky Gate Hospitality Private Limited, has had a demand order from the Income Tax Department for INR 59.52 million quashed. The original demand, issued under Section 143(3) of the Income-tax Act, 1961 for Assessment Year 2024-25, pertained to alleged excess premium on share issuance. Sky Gate had filed a rectification application under Section 154 of the Income Tax Act, which has now been accepted by the Deputy Commissioner of Income Tax, leading to the cancellation of the demand order. This resolves a potential financial liability for the subsidiary.