PR. COMMISSIONER OF INCOME TAX (CENTRAL)-2, DELHI vs. AMBIENCE HOTELS AND RESORTS PVT. LTD.

$~2 to 4 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 228/2025 + ITA 229/2025 + ITA 230/2025 PR. COMMISSIONER OF INCOME TAX (CENTRAL)-2, DELHI .....Appellant Through: Mr. Siddhartha Sinha, SSC and Ms. Easha Gurung, JSC versus AMBIENCE HOTELS AND RESORTS PVT. LTD. .....Respondent Through: Mr. Kumail Abbas, Mr. Sahar Irfan and Ms. Riya Jain, Advs. CORAM: HON'BLE MR. JUSTICE DINESH MEHTA HON'BLE MR. JUSTICE VINOD KUMAR O R D E R %

05.02.2026 1. 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). 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