Lemon Tree Hotels (NSE: LEMONTREE, BSE: 541233) Reports Tax Demand & Penalty Notice for Subsidiary

February 03, 2025 – Lemon Tree Hotels Limited has disclosed under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, that its subsidiary, M/s Sukhsagar Complexes Private Limited, has received a tax demand and penalty notice from the Office of the Superintendent, CGST Range-XXIII, Jaipur.

Key Highlights of the Tax Order​

• Authority: Office of the Superintendent, CGST Range-XXIII, Jaipur
• Nature of Action: A demand order imposing tax liability of ₹82,554 along with a penalty of ₹82,554, totaling ₹1,65,108, under Section 74 and Section 122 of the CGST Act, 2017.
• Date of Order Receipt: February 03, 2025
• Alleged Violation: The GST authorities have raised a demand comprising tax and penalty, citing contraventions under the applicable CGST provisions.

Impact on Financials & Legal Action​

• The company has clarified that the notice pertains solely to its subsidiary and will not have a material impact on the financials or operations of Lemon Tree Hotels.
• The subsidiary is assessing legal remedies and will take appropriate legal action in response to the demand.

Company Statement​

Lemon Tree Hotels’ Chief Financial Officer, Kapil Sharma, confirmed the receipt of the notice and reassured stakeholders that the company is evaluating the next course of action while ensuring compliance with legal obligations.

Conclusion​

While the tax demand and penalty notice impact a subsidiary, Lemon Tree Hotels asserts that its core financials remain unaffected. The company is expected to pursue legal options to contest or comply with the order in due course. Investors should monitor further disclosures regarding any potential financial adjustments or legal proceedings.