NEW DELHI, Dec 16 (Reuters) – An Indian court has lifted an income tax department freeze on 37 billion rupees ($447.65 million) in fixed deposits of China’s Xiaomi Corp ( 1810.HK ), court filings said on Friday. two people you know. .
Xiaomi and the income tax department did not immediately respond to Reuters’ requests for comment.
No further details of the Karnataka state court’s decision, issued on Friday, were immediately available.
Indian tax officials froze the funds in February as part of an investigation into alleged tax evasion. read more
The investigation related to allegations that the Chinese company bought smartphones from its contract manufacturers in India at inflated costs, allowing it to make smaller profits by selling them to customers and avoiding corporate income tax, Reuters reported in May. read more
The freezing of funds by the income tax authorities was the culmination of another legal tussle facing Xiaomi, where it challenged the freezing of $666 million of its funds by India’s federal financial crime agency for alleged illegal overseas transfers.
The court has yet to rule on the case following Xiaomi’s challenge.
($1 = 82.6530 Indian Rupees)
Report by Aditya Kalra in New Delhi. additional reporting by Arpan Chaturvedi; Chris Thomas writes; Editing by Anil D’Silva
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