Foreign firms can’t be deemed inactive for lack of local office: SC

The Supreme Court on Friday ruled that a foreign company cannot be said to have stopped doing business in India merely because it has no office or active contract in the country, holding that such a narrow view undermines India’s global trade ambitions and ease of doing business goals.

- Utkarsh Anand

The top court restored the orders of the ITAT, which had allowed the deductions.

(PT)

A bench of justices Manoj Misra and Joymalya Bagchi said that in an era of globalisation, the life blood of which is transnational trade and commerce, courts must adopt a pragmatic approach consistent with contemporary business realities.