Bengaluru (The Hawk): The Karnataka High Court has quashed the Income Tax department's order to seize Rs 3,700 crore from a fixed deposit as part of a tax fraud lawsuit against Xiaomi Technology India, which is a significant victory for the firm.
The court recently issued an order preventing Xiaomi Technology from sending any payments from FDs worth Rs 3,700 crore to companies outside of India. Additionally, it mandated that draught assessment proceedings be finished by March 31 by the Income Tax agency.
The corporation is permitted to take out overdrafts against the FD accounts and make payments, according to the ruling of a bench presided over by Justice S.R. Krishna Kumar.
The principal commissioner's consent, the bench emphasised, exhibits utter lack of mental effort. It is a silent, unjustified permission that is against the law. The only justification given by the IT department for the attachment of FDs was to safeguard revenue interest. The bench ruled that the approval-based impugned ruling needed to be reversed.
The IT department made the case that the petitioner, who was accused of cheating the respondents and evading taxes by moving money outside of India, shouldn't receive any assistance.
(Inputs from Agencies)