Delhi HC sets aside Amazon Web Services tax reassessment over ₹4,500 crore remittances, sends case for fresh look
Hearing AWS’s plea against the reassessment order, the court held that the company should be given a personal hearing and an opportunity to explain whether the transactions had already been examined in an earlier assessment.
The Delhi High Court has set aside an income-tax department order seeking to reopen Amazon Web Services (AWS) assessment over foreign remittances of over ₹4,500 crore, sending the matter back for fresh consideration. The court ruled that AWS should be given a personal hearing and an opportunity to explain the transactions, which were flagged by the risk management system (RMS) of the tax department.
AWS argued that the income for the relevant assessment year had already been examined by the income-tax authorities, and the court agreed, questioning the department on the remaining transactions to be reviewed and the basis for determining whether AWS had a permanent establishment (PE) in India.
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