Case Law Details
Brief of the case:
ITAT Delhi held in Ambience Hotel & Resort Pvt. Vs CIT that if the AO had done his assessment ignoring the provisions of the IT act and TPA and ignoring the examinations/inquiry then that assessment was erroneous and prejudicial to the interest of the revenue irrespective of the fact that there was no financial loss to the revenue.
Facts of the case:
Ambience Developers & Infrastructure Pvt. Ltd had given interest free refundable deposit of Rs 75CR to its sister concern Ambience Hotel & Resort Pvt. And in return Ambience Hotel & Resort Pvt. gave rights in some retail spaces in the hotel premises for managing leasing and to receive appropriate revenue and receipts from said spaces. The AO taxed the lease rental income in the hands of Ambience Hotel & Resort Pvt. but assessee was of the view that the same would be taxable in the hands of Ambience Developers & Infrastructure Pvt. Ltd and that issue was not erroneous and prejudicial to the interest of revenue so sec 263 could not be invoked.
Contention of the assessee:
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