In the landmark case Vodafone International Holdings BV
v. Union of India (2012), the Supreme Court addressed the issue of acquisition by foreign companies and related regulations under corporate and tax law. Though primarily a taxation matter, the Court's principles have implications for corporate governance. The Court established that: Which principle was established regarding corporate acquisitions?

In Vodafone International Holdings BV v. Union of India (2012), the Supreme Court held that where a corporate transaction is structured in accordance with legal provisions and applicable law, capital gains should be assessed as per the structure adopted. The Court rejected the tax authority's attempt to disregard the corporate form and impose taxes retrospectively. This landmark judgment established the principle that corporate acquisitions can be structured within statutory frameworks without triggering unintended tax consequences, and that the substance-over-form doctrine cannot be applied to override statutory provisions without express legislative intent. The decision has shaped corporate transaction planning in India.