By Aditya Kalra

NEW DELHI, Dec 16 (Reuters) – An Indian court has lifted the income tax department’s freeze on China-based Xiaomi Corp’s 37 billion rupees ($447.65 million) fixed share holding. ), two people familiar with the proceedings said Friday.

Xiaomi and the income tax department did not immediately respond to Reuters’ request for comment.

Further details on the Karnataka court’s decision announced on Friday were not immediately available.

Indian tax officials seized the money in February as part of an investigation into tax evasion.

The investigation concerns allegations that the Chinese company bought high-end smartphones from contract manufacturers at inflated prices in India, allowing it to record smaller profits by selling them to consumers and avoiding corporate tax, Reuters reported in May.

The cancellation of the funding by the income tax authorities was on top of another legal dispute Xiaomi is facing against the blocking of 666 million dollars by the federal agency. fighting financial crime in India for alleged illegal remittances.

The court has yet to issue a decision on the case following Xiaomi’s challenge. ($1 = 82.6530 Indian Rupees) (Reporting by Aditya Kalra in New Delhi; Additional reporting by Arpan Chaturvedi; Writing by Chris Thomas; Editing by Anil D’Silva)



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