CIT International Taxation-2 Vs Hyundai Rotem Company (Delhi High Court)
Electronic Upload on ITBA = Legal Receipt: Physical Delivery Irrelevant, Says Delhi HC- DRP Upload Date Decides Limitation— Faceless or Not, Upload Date Rules: Delhi HC Quashes AO’s Order Passed One Day Late
Delhi High Court dismissed the appeal filed by Revenue & upheld the order of ITAT which had quashed the Final Assessment Order (FAO) passed against Hyundai Rotem Company for AY 2018-19 as being time-barred. Assessee, a Korean company engaged in manufacture of railway vehicles, had faced a transfer pricing adjustment in respect of administrative support services. DRP had issued its directions on 24.05.2022 which were uploaded on the ITBA Portal on 26.05.2022 with a Document Identification Number (DIN). AO, however, contended that the physical copy of DRP order was received only on 01.06.2022, & accordingly, claimed that FAO passed on 01.07.2022 was within the limitation period prescribed u/s 144C(13).
Revenue argued that since the case pertained to International Taxation, the Faceless Assessment Scheme (FAS) did not apply & therefore physical receipt of DRP order alone triggered the limitation period. It further contended that the order was not visible in AO’s ITBA worklist until 30.06.2022 & hence the time should be computed from the date of physical receipt. Assessee, on the other hand, submitted that once DRP directions were uploaded on ITBA portal, they were deemed to have been “received” by AO as per Section 13 of the Information Technology Act, 2000 read with Section 282 of the Income-tax Act. It was urged that electronic upload constituted valid service & receipt, making the assessment completed on 01.07.2022 beyond the permissible time.
