Vodafone conundrum and India's tax regime

The international court's ruling shows that a law amended by India's parliament has remained only on paper

The jubilation over Vodafone’s victory in international arbitration at the Hague against India’s tax authorities bristles with serious misconceptions. The issue simply is about India’s territorial jurisdiction over “assets located in India”. On January 20, 2012, the Supreme Court (SC) ruled that India had no territorial jurisdiction if non-residents transfer such assets indirectly. In March 2012, India’s parliament clarified to the contrary. The issue continues to fester — to deny India her legitimate tax dues! 

Why did the SC overrule a brilliant judgment delivered by the Bombay High Court (HC) on September 8, 2010? The high court held that India