The provisional attachment decision against Xiaomi India issued by the IT department overturned by the Karnataka High Court.

Recent order of the Income Tax Department to temporarily attach Xiaomi India’s fixed deposits totaling 3,700 crore for a term of six months was overturned by the Karnataka High Court [Xiaomi Technology India v. Deputy Commissioner Of Income Tax].

The order, according to Justice SR Krishna Kumar, was arbitrary and revealed a preconceived conclusion without expressing an opinion or a need to attach the property.

A claim that Xiaomi was engaging in profit-diversion outside of India and paying foreign organisations under the guise of royalties led to the seizure order.

This news is written by Ms. Amrita Singh, Research Assistant, All India Legal Forum.

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