India, July 12 -- In a major reprieve for OYO, the Delhi High Court (HC) has reportedly stayed the recovery of tax demand worth nearly INR 1,140 Cr from the hospitality giant under the erstwhile angel tax regime.

As per Economic Times, the demand notice, which pertained to assessment year 2021-22, was issued after OYO Hotels & Homes issued compulsorily convertible preference shares (CCPS) to its holding company Oravel Stays.

It is pertinent to note that the National Company Law Tribunal (NCLT) approved a scheme of demerger between Oravel Stays and OYO Hotels & Homes in 2019.

The Income Tax (I-T) department argued that Oravel's investment into OYO Hotels & Homes in lieu of the shares was an income, and was taxable. However, OYO conteste...