The taxman’s controversial view that income could arise from share transfer between Indian arms of global companies and their foreign associates was struck down by the Bombay High Court for the second time in a little over a month on Tuesday, dispelling fears of a virtual tax on much-needed foreign direct investment (FDI). Iterating the principles laid down in its October 10 ruling in Vodafone India’s case that cross-border share transfers cannot lead to income and in the absence of an express provision to tax, the court relieved Shell India of a huge potential tax burden.

Source - http://www.financialexpress.com