New Delhi (dpa) – Royal Dutch Shell PLC has won a multimillion-dollar tax dispute case against Indian authorities, a spokesman for the company said Wednesday.
The Bombay High Court Tuesday ruled in favour of Shell in a case that has often been cited as an example of the hurdles in doing business in India.
The case relates to alleged undervaluation of shares issued by Shell India Markets Private Limited to an overseas group entity Shell Gas BV.
India’s Income Tax Department had added 150 billion rupees (about $2.4 billion) and 30 billion rupees for financial years 2007-08 and 2008-09 to the taxable income of Shell India which the company challenged in court, financial news website livemint.com reported.
“We welcome the high court decision. Shell has always maintained that equity infusion by a foreign parent company into an Indian subsidiary cannot be taxed as income,” a spokesman for Shell in India said. “This is a positive outcome, which should provide a further boost to the Indian government’s initiatives to improve the country’s investment climate.”