Hyundai Rotem Company Indian Project Offices Vs ACIT International Taxation (ITAT Delhi)
In a recent judgment, the Income Tax Appellate Tribunal (ITAT) Delhi declared the final assessment order issued against Hyundai Rotem Company Indian Project Offices as time-barred. The Tribunal emphasized that compliance timelines under Section 144C(13) of the Income Tax Act begin from the date of the electronic upload of the Dispute Resolution Panel (DRP) directions.
Case Background
Hyundai Rotem, a Korean company specializing in railway vehicles and related technology, filed its income tax return for the assessment year 2018-19, declaring a total income of ₹13.64 crore. Following scrutiny under CASS, the case was referred to the Transfer Pricing Officer (TPO), who proposed an adjusted assessed income of ₹21.01 crore.
The company challenged the TPO’s findings before the DRP. The DRP issued its directions on May 24, 2022, which were electronically uploaded on May 26, 2022. The final assessment order was passed on July 1, 2022, leading the company to appeal on the grounds of time-barred finalization.
Contentions Raised by Hyundai Rotem
Hyundai Rotem, represented by its authorized counsel, raised the following points:
- Barred by Limitation: The final assessment order, passed on July 1, 2022, exceeded the statutory timeline prescribed under Section 144C(13) of the Income Tax Act.
- Jurisdictional Issues: The company argued that the assessment was illegal and lacked jurisdiction.
- Technical Non-Compliance: Additional grounds highlighted the absence of a valid Document Identification Number (DIN) in the DRP’s directions, though this was not pressed during the hearing.
The counsel relied on precedents, including the Delhi High Court rulings in PCIT vs. Fiberhome India P. Ltd. and Louis Dreyfus Company India Pvt. Ltd., which emphasized strict adherence to statutory timelines.
