India, June 12 -- Hotel aggregator OYO, now rebranded as PRISM, has received a tax relief of Rs.3,885.51 Cr, which was in relation to its share premium received by it from parent entity Oravel Stays Ltd (OSL).

"The action of the assessing officer in bringing to tax an amount of Rs.3885,51,75,255 as income under section 56(2)(viib) of the Income-tax Act, 1961, is contrary to the facts of the case and the legal position. The same, therefore, calls for being reversed and the aforesaid addition deleted," the court order read.

Before the Income Tax Appellate Tribunal (ITAT), the company argued whether the valuation was correct, but whether the tax department can change the valuation methodology chosen by the company.

PRISM declined to respo...