Devyani International Limited has announced that Sky Gate Hospitality Private Limited, its wholly-owned subsidiary, received a Rectification Order from the Deputy Commissioner of Income Tax on June 10, 2026. The Rectification Order, dated June 9, 2026, quashes a previous demand order of Rs 5.95 crore that had been issued under section 143(3) of the Income-tax Act, 1961 for Assessment Year 2024-25. The original demand pertained to alleged excess premium on the issuance of shares by Sky Gate during the financial year 2023-24.
Devyani International Limited had first disclosed the receipt of this demand order to the stock exchanges on March 25, 2026 under Regulation 30 of the SEBI Listing Regulations. The disclosure informed the exchanges that Sky Gate was in receipt of the demand concerning alleged excess premium on share issuance. Sky Gate subsequently filed a rectification application under section 154 of the Income-tax Act, 1961, seeking a review of the demand.
The Deputy Commissioner of Income Tax accepted the submissions made by Sky Gate in full and issued the Rectification Order on June 9, 2026, setting aside the earlier demand of Rs 5.95 crore. The Rectification Order was received by Sky Gate on June 10, 2026. With this order, the income tax liability of Rs 5.95 crore against Sky Gate Hospitality Private Limited stands fully resolved.
Devyani International Limited has now updated the exchanges on this development, confirming the resolution of the tax demand through the rectification process. The disclosure was made under Regulation 30 of the SEBI Listing Regulations read with the relevant SEBI Master Circular. The matter pertains to Assessment Year 2024-25 and the share issuance by Sky Gate during the financial year 2023-24.
Disclaimer: This article is based on company filings submitted to the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) and is for informational purposes only. It does not constitute investment advice or a recommendation. Investors should conduct their own research and consult a qualified financial advisor before making investment decisions.