The Indian High Court dismissed the writ petition on 27 February 2013 in the case of DIT v. Goodyear Tire and Rubber Company (Writ Petition No. 8295/2011) that was filed by the tax authorities and reaffirmed that the transfer of shares without consideration in the course of reorganization is not liable to tax in India and is not prima facie a tax avoidance scheme.
(a) Facts. The Taxpayer (i.e. Goodyear Tire and Rubber Company), a United States (US) resident company, transferred 74% equit…