ACIT Vs POSCO International India Pvt. Ltd. (ITAT Delhi)
Summary: The Revenue appealed against the order of the CIT(A), Delhi, dated 09.06.2022, which deleted a transfer pricing adjustment of ₹13,42,61,738/- relating to the assessee’s purchase of steel slabs and HRCF coils from its Associated Enterprise (AE), POSCO, Korea, for resale on a merchant trading basis. The appeal before the ITAT Delhi concerned Assessment Year 2016-17. The assessment had originally been completed under section 143(3) read with section 144C(3) of the Income Tax Act, 1961.
The Revenue’s appeal was delayed by 27 days. The Tribunal noted that the assessee did not object to condonation of the delay and, after considering the reasons stated in the condonation application, found reasonable and sufficient cause. The delay was therefore condoned and the appeal was admitted.
The assessee, incorporated in Financial Year 2010-11 and wholly owned by Posco Daewoo Corporation, Seoul, Korea, was engaged in export of business support services, trading of industrial materials on commission basis and trading of industrial materials on a principal-to-principal basis. During the relevant year, it entered into various international transactions with its AEs. The TPO accepted the arm’s length nature of most transactions but made an adjustment of ₹13,42,61,738/- concerning purchase of steel slabs and HRCF coils.
