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Court quashes IT department $448 mn block on Xiaomi's deposits: Report

A pedestrian wearing a protective mask walks past a Xiaomi Corp. store in Hong Kong, China. (Bloomberg)

Xiaomi and the income tax department did not immediately respond to Reuters' requests for comment.

Further details of the Karnataka state court's decision announced on Friday were not immediately available.

Indian tax officials froze the funds in February as part of an investigation into alleged tax evasion.

The investigation concerned allegations that the Chinese company purchased smartphones from its contract manufacturers at inflated costs in India, allowing it to record a smaller profit by selling them to customers and evading corporate income taxes, Reuters reported in May.

The fund freeze by income tax authorities was on top of another legal tussle Xiaomi faces where it has challenged a block on $666 million of its funds by India's federal financial crime fighting agency for alleged illegal foreign remittances.

A court is yet to pronounce a decision on the case following Xiaomi's challenge. ($1 = 82.6530 Indian rupees) 

This story has been published from a wire agency feed without modifications to the text.

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