Devyani Subsidiary Sky Gate Tax Demand Quashed

Key Quantitative Figures

• Original tax demand amount: INR 59.52 million (₹5.952 crore)
• Assessment Year: 2024-25
• Financial year pertaining to the share issuance: 2023-24

Dates of Action

• Initial intimation about tax demand: March 25, 2026 (under Regulation 30 of SEBI Listing Regulations)
• Rectification Order date: June 9, 2026
• Rectification Order received date: June 10, 2026
• Current disclosure date: June 11, 2026

Parties Involved

• Devyani International Limited (listed entity)
• Sky Gate Hospitality Private Limited (wholly-owned subsidiary of Devyani International Limited)
• Income Tax Department
• Deputy Commissioner of Income Tax (issuing authority for Rectification Order)

Resolution Outcome

The Deputy Commissioner of Income Tax accepted the submissions made by Sky Gate Hospitality Private Limited and accordingly quashed the Demand Order through a Rectification Order.

Financial Impact

The original tax demand of INR 59.52 million has been completely nullified, resulting in no financial liability for the subsidiary. The company confirms that the detailed disclosure requirements were already fulfilled through the earlier intimation dated March 25, 2026.