Held, Court held that the transfer of these rights and entitlements constitute capital, which can be taxed as part of non-resident income. This upholds the contention of the tax authorities which argued that Vodafone (non-resident buyer) should have deducted tax before making payment to the non-resident seller. The Court also remarked that only that part of income will be taxed in India which can be attributable to India and not on the foreign source income.
