Another Chinese company, Huawei India, is under the scanner of the Income Tax Department, amid the ED’s ongoing probe into Chinese mobile firm Vivo over allegations of financial irregularities. IT Dept has said that Huawei India paid 730 crores as dividend to its parent company in China.
However, while filing taxable income, Huawei India has stated that their income in India has come down drastically.
According to a report published in economic timesIn February this year, the Income Tax Department intensified its investigation into the bank accounts of Huawei India and frozen the bank accounts. After which the company appealed in the Delhi High Court and told that the IT department has closed their accounts without giving any notice. The company told the court that their business has been badly affected due to the closure of bank accounts.
However, the tax department said the Huawei entity has not produced its books of accounts “to date”, making it “impossible to ascertain the veracity of the income declared by the company” as cited in the report. Economic Times.
Meanwhile, the Delhi High Court on Friday asked the Enforcement Directorate (ED) to decide on the representation of Vivo India (petitioner) seeking permission to operate its bank accounts, which were recently frozen in connection with a money laundering case. were done.
The ED, in its statement, had said that all due procedures as per law were followed during the said operations in each of the premises. “The employees of Vivo India, including some Chinese nationals, did not cooperate with the search process and tried to avoid, remove and hide the digital devices recovered during the search,” it said.
According to the ED, around 23 affiliated firms of Vivo India such as Grand Prospect International Communication Pvt Ltd (GPICPL) transferred substantial amounts to the firm and out of the total sale proceeds 1,25,185 crore, this remitted 62,476 crore – about 50 per cent of the business – outside India, mainly to China.