Hotel chain Oyo may be eyeing a 19 per cent jump in revenues for FY23, but at the same time it has been running into trouble with authorities. Its Initial Public Offer, which has already been pushed off once, ran into another hurdle when SEBI asked it to refile the draft for its stock market debut. But the startup has found some relief from the Delhi High Court's decision about an angel tax demand of Rs 1,140 crore from the firm.
The Income Tax Department had demanded the amount, on an investment made in Oyo, by its own holding firm Oravel Stays. The tax authority considered the investment by the parent into a subsidiary, as an income for the startup. The Delhi High Court directed the Income Tax department to decide on the review application against the tax demand, and granted a stay for Oyo.
Relief for Oyo from the court comes at a time when it is set to finish its first full profitable financial year, with an estimated profit of Rs 185 crore for the second half of FY23. The Income Tax demand for an angel tax was a result of the addition of Section 56(2)(VIIB).
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