The Delhi High Court quashed tax proceedings against Teva Pharmaceutical Industries and its U.S. affiliate. This ruling concludes a legal battle spanning nearly nine years regarding a deal with Ranbaxy Laboratories.
The court ordered the Indian income tax department to refund approximately ₹783 crore ($94 million) to Teva’s Israeli division. This refund includes applicable interest and must be processed within two months.
The dispute originated from Ranbaxy payments made to Teva Israel despite an original agreement with Teva USA. Tax authorities alleged the structure sought unfair advantages under the India-Israel tax treaty.
The court found the tax proceedings were time-barred. Teva must provide a corporate guarantee to receive the funds.