I-T Dept accuses Huawei India of sending huge sums to parent company

The Income Tax Department has accused an Indian unit of Chinese technology company Huawei of repatriating large amounts to the parent in the form of dividends, reducing its taxable income.

The department said the company had repatriated Rs 750 crore even when its revenue was reducing drastically. The department had frozen the bank accounts of the company in February, after conducting a search operation in its premises and accusing it of tax evasion.

The department detailed the charges against the company in its response filed earlier this week. In its affidavit justifying the attachment, the tax department described Huawei's petition as a ploy raised on fatuous grounds just to obstruct departmental proceedings and to avoid consequential payment of taxes.

The tax department said the Huawei unit had not produced its books of accounts till date, making it impossible to ascertain the accuracy of the income declared by the company. Huawei had denied any wrongdoing and claimed in its petition to the court that the attachment of the accounts, without giving any notice, had affected its business.

Huawei is among one of the Chinese companies whose activities in India are under strict investigation. Companies like smartphone manufacturers Vivo and Xiaomi and some entities linked to them are also under the radar of Indian investigators including the Enforcement Directorate that probes money laundering.