Vodafone has emerged victorious in an 85 billion rupee ($1.31 billion) tax dispute over the acquisition of its Indian unit in 2007.
The Bombay High Court found in favor of the operator during the transfer pricing case related to the acquisition of what was then Hutchison Essar, Bloombergreported.
But a separate dispute over the capital gains from the acquisition is ongoing, and heading to international arbitration.
The dispute between Vodafone and Indian tax authorities has been a high-profile example of the international business community's dissatisfaction with Indian tax laws covering overseas companies.
After Vodafone won a supreme court challenge over a $2.5 billion tax bill, arguing that taxes are not payable on transactions between offshore holding companies, the government famously changed its tax law to abolish this loophole, made the change retroactive and served the company with a fresh demand.
But the Indian government has been attempting to address its reputation among the international business community of having an unpredictable tax code.