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Freedom 251 mobile price of Rs 251 draws attention of Income Tax Department

Ringing Bells Private Limited, makers of the world's cheapest smartphone, has come under the scanner of income tax department as debates around the feasibility of offering a Rs 251 smartphone continue.

The income tax department is looking into the financial structure of the Noida-based company and has obtained documents, including those from the Registrar of Companies.

Since the government itself says the Freedom 251 should have cost, at its cheapest, at Rs 2,300 and the company has said the smartphone's cost is around Rs 2,500, the debate continues as to what is going to happen next and some are already referring to it as the Freedom 251 mobile scam.

Beside government scanner, the company found itself surrounded by another controversy too - of showcasing a rival company, Adcom's handset, as its own. Ringing Bells President Ashok Chaddha clarified that it wanted to show a sample of what the handsets will look like. This is not the final piece.