- It control torque at electric motor shaft or rear wheel?
Since they are directly connected via the drive belt it doesn't really matter. If you open throttle on an icy surface, neither the rear wheel nor the pulley at the electric motor will be able to apply much torque. The numbers are different since the sprockets aren't the same size, but that like asking if you're going 50 mph or 80 kph. Same thing.
- Why we have to control this torque? What does it bring to? to causion any part damage?
The point is to prevent friction loss between the rear tire and the street. Even on a slippery surface with full regen, the wheel will not lock up. Or at full acceleration, the torque control prevents wheelies as well as a burnout.
I hope that answers your question. If not, there is a section in the manual where drag torque control is explained.