Commissioner Of Income Tax, Meerut And ... vs Hyundai Heavy Industries Co. Ltd

The Supreme Court addressed the taxation of profits of Hyundai Heavy Industries Co. Ltd. under the Income-tax Act, 1961, specifically Article 7 of the Convention for Avoidance of Double Taxation (CADT). The Court held that the company constituted a permanent establishment (PE) in India as per Article 5(3) of CADT due to the duration of its project exceeding nine months, thus making it liable to tax in India. The Court affirmed the rejection of the Completed Contract Method for accounting as the assessee failed to produce relevant books of accounts, leading to the conclusion that profits attributable to the PE were taxable in India.