Delhi HC stays ₹329 cr tax penalty on Vivo Mobile India

The Delhi High Court on Thursday stayed the recovery of ₹329 crore penalty imposed by the income tax department against Vivo Mobile India, which manufactures and sells smart mobile phones and accessories under the brand name of ‘Vivo’ and ‘iQOO’, even as it sought response from the income tax department.

A Division Bench led by Justice V Kameshwar stayed the Transfer Pricing Officer’s (TPO) order asking Vivo Mobile India, a wholly owned subsidiary of Honk Kong-based Multi Accord, to pay ₹329.11 crore penalty on various grounds, including failure to accurately disclose the group holding structure and declaring Vivo China as an associated enterprise, besides the international transactions undertaken by them.