Read an article today on taxability of capital gains. This article, inter alia speaks of tax avoidance plnning in India. Tax avoidance schemes are prohibited by law in India. (Supreme Court's judgemnet in Mc Dowell's case of 1985; the judgemnet has been quoted in the article). However, under the guise of foreign investment promotion into India, the government has been winking to such blatant activity. The author gives the example of recent Vodafone judgemnet. (The article can be accessed at  http://www.thehindu.com/opinion/lead/article2920912.ece.)