Hi Sharanya,

Try the following which is working fine with the link_to_remote and 
remote_form_for


render :update do |page|
      if error occurs # write a condition which checks error occurs or 
not here
          page.show , "errors"
          page.replace_html, "errors", "Write a String after error 
occurs here."
      else
          page.hide , "errors"
          # code u want to update if error not occurs.
      end
 end


Check development.log if u running application in development mode for 
AJAX errors.
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