Mumbai, Dec. 3: Companies, tax consultants and merger mavens are spooked by Bombay High Court’s decision to toss out the Vodafone petition.

The fear is that the taxman’s shadow could fall across several other cross-border mergers and takeovers in the past few years.

Last December, the Central Board of Direct Taxes had re-opened nearly 400 cases relating to big cross-border mergers and acquisitions as well as private equity deals. The tax authorities had issued several showcause notices.

The Vodafone case is seen as a litmus test that will determine the enforceability of similar tax claims against other buyout artists.

Among the deals that could come under the tax scanner are Montreal-based Alcan’s sale of a controlling stake in Indal to Hindalco, the sale of the Foster’s brand name by the Australian company to SAB Miller in India, and the Birla-AT&T transaction.

“We understand that Bombay High Court has passed a huge order and we have not studied all the implications yet. Besides, it has been dismissed so the case is not lost per se. However, people will be concerned as all mergers and acquisitions that have any connection with India can be potentially impacted,” said Nishith Desai of international tax firm Nishith Desai & Associates.

“This is a short circuit situation where the petitioner approached the high court for immediate relief and the dismissal does not mean that the tax is applicable,” said Sudhir Kapadia of Ernst & Young.

“However, if we assume that the final ruling will go against Vodafone, then potentially all private equity transactions coming in through Mauritius will be impacted,” added Kapadia.