Sky Gate Hospitality Faces Income Tax Demand of Rs 5.95 Crores 

Sky Gate Hospitality Faces Income Tax Demand of Rs 5.95 Crores 

Sky Gate Hospitality, a wholly owned subsidiary of Devyani International Limited, is currently facing an income tax demand. Devyani International, on Wednesday, disclosed that its subsidiary has received a demand order from the Income Tax Department towards the alleged excess premium on the issuance of shares by Sky Gate during the financial year 2023-24.

Background of the Case

The Income Tax Department has claimed that Sky Gate received an excess premium when issuing shares for the financial year 2023-24. As a result, the department issued a tax order under section 143(3) of the Income Tax Act, 1961, raising a demand of Rs 59.52 million (Rs 5.952 crore).

Key Details of Order

Particulars	Details
Issuing Authority	Assessment Unit, Income Tax Department
Nature of Type	Demand Order under Section 143(3)
Assessment Year	2024-25
Date of Receipt	March 25, 2026
Demand Amount	Rs 59.52 million

Company’s Next Step

As per the regulatory filing, Sky Gate is currently evaluating the demand order. The company stated that Sky Gate will take the steps available under the relevant law, including filing an appeal before the Appellate Authority.

Financial Impact

The company said that the receipt of this order does not have any material impact on the financial, operation or other activities of the company.

Company’s Disclosure Requirement

The above disclosure was given by Devyani International Limited to both the stock exchanges under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.