India has accused Huawei of tax evasion, says government source

New Delhi: An Indian tax investigation on China's Huawei Technologies has found that the telecoms equipment maker manipulated account books to reduce its taxable income in the country, an Indian government source told Reuters on Thursday.

Without naming the company, India's Ministry of Finance said that a major telecoms group "failed to provide any substantial and appropriate justification" on tax claims during income tax raids on its offices in three Indian cities last month.

A Huawei spokesperson in India did not immediately respond to a request for comment.