Huawei India sent ₹730 crore to China despite huge loss: I-T department
Premium- According to a report, the Income Tax Department increased the investigation and froze the bank accounts of the Huawei India in February this year.
Amidst the ongoing invetigation by ED on Chine mobile firm Vivo on allegations of financial irregularities, another Chinese company, Huawei India is under the lens of the Income Tax Department. The I-T department has said that Huawei India paid ₹730 crore as adividend to its parent company in China.
However, while filling the taxable income Huawei India has said that their income has come down drastically in India.
According to a report published in Economic Times, the Income Tax Department increased the investigation and froze the bank accounts of the Huawei India in February this year. After which the company appealed to the Delhi High Court and told that the I-T department has closed their accounts without giving any notice. The company told the court that due to the closure of bank accounts, their business was affected badly.
However, the tax department said the Huawei unit had not produced its books of accounts "till date", making it "impossible to ascertain the veracity of the income declared by the company" as quoted in the report by Economic Times.
Meanwhile, the Delhi High Court on Friday asked the Enforcement Directorate (ED) to decide on Vivo India's (petitioner) representation seeking permission to operate its bank accounts which were recently frozen in connection with a money laundering case.
ED in its statement had said that all due procedures as per the law were followed during the said operations at each premise. "The employees of Vivo India, including some Chinese nationals, did not cooperate with the search proceedings and had tried to abscond, remove and hide digital devices which were retrieved by the search," it added.
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According to the ED, Vivo India's nearly 23 associated firms such as Grand Prospect International Communication Pvt Ltd (GPICPL) transferred huge amounts to the firm and out of the total sale proceeds of ₹1,25,185 crores, it remitted ₹62,476 crores-- almost 50 per cent of the turnover-- out of India, mainly to China.