Assertion
Lithium sulphate does not form alums.
Reason
Li+ is too small to form a stable lattice required for double-salt/alum formation.
Both the assertion and the reason are correct. The reason is the correct explanation for the assertion
Lithium sulphate is soluble in water, going with the general trend of the group. The other alkali metals sometimes form double salts whereas Li+ is too small to form a stable lattice required for double salts/alum.