Dismissed¶19

Pr. Commissioner of Income Tax (CENTRAL)-2, Delhi v. Ambience Hotels and Resorts Pvt. Ltd.

Delhi HC5 Feb 2026ITA/228/2025

Case brief

AI extract

What is this about?

Section 271(1)(c) Income Tax Act 1961; penalty proceedings; concealment; inaccurate particulars of income; penalty order dated 27.01.2023; ITAT Delhi Bench 'A'; SLP rejected Diary no.10953/2024; Mohd. Farhan A. Shaikh Vs. ACIT 434 ITR 1 (Bom) (FB); PCIT Vs. Sahara Life Insurance Co. Ltd. 432 ITR 82 (Del); Ambience Hotels and Resorts Pvt. Ltd.; ITA 228/2025, ITA 229/2025, ITA 230/2025; appeals dismissed; issue attained finality.

What did the court decide?

Since the issue raised in the appeals has attained finality - the Special Leave Petition against the governing judgments having been rejected - all three appeals (ITA 228/2025, ITA 229/2025 and ITA 230/2025) are dismissed. ¶19

Pr. Commissioner of Income Tax (CENTRAL)-2, Delhi Vs Ambience… — Income Tax | Delhi HC (2026)

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$~2 to 4

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IN THE HIGH COURT OF DELHI AT NEW DELHI

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- ITA 228/2025

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- ITA 229/2025

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- ITA 230/2025

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PR. COMMISSIONER OF INCOME TAX (CENTRAL)-2, DELHI

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.....Appellant

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Through: Mr. Siddhartha Sinha, SSC and Ms. Easha Gurung, JSC

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versus

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AMBIENCE HOTELS AND RESORTS PVT. LTD.

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.....Respondent Through: Mr. Kumail Abbas, Mr. Sahar Irfan and Ms. Riya Jain, Advs.

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CORAM: HON'BLE MR. JUSTICE DINESH MEHTA HON'BLE MR. JUSTICE VINOD KUMAR

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O R D E R

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% 05.02.2026

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The Income Tax Appellate Tribunal, Delhi Bench: ‘A’ New Delhi ( hereinafter referred to as ‘the Tribunal’ ) while holding the penalty proceedings under Section 271(1)(c) of the Income Tax Act, 1961 to be illegal, has quashed the orders of the authorities. While doing so, it has found that the basic ingredients for levy of penalty i.e. inaccurate particulars of income or concealment has not been recorded in the penalty order dated 27.01.2023, as held in the judgment of Bombay High Court in the case of Mohd. Farhan A. Shaikh Vs. ACIT reported at 434 ITR 1 (Bom) (FB) and the judgment of this Court in the case of PCIT Vs. Sahara Life Insurance Co. Ltd. reported as 432 ITR 82 (Del).

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This is a digitally signed order.

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The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 09/02/2026 at 12:28:47

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It is fairly informed by Mr. Siddhartha Sinha, learned Senior Standing Counsel that Special Leave Petition (SLP) against these judgments has been rejected. The Diary no.10953/2024 provided by the Income Tax Department does not match with the parties name as annexed.

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In view of the aforesaid, since this issue has attained finality, all three appeals are dismissed.

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DINESH MEHTA, J.

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VINOD KUMAR, J.

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FEBRUARY 5, 2026/ ss

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This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 09/02/2026 at 12:28:47

Pr. Commissioner of Income Tax (CENTRAL)-2, Delhi v. Ambience Hotels and Resorts Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

Pr. Commissioner of Income Tax (CENTRAL)-2, Delhi v. Ambience Hotels and Resorts Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

Issues for consideration

Cases cited

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