India’s Supreme Court has ruled British telecom giant Vodafone is not liable for more than $4 billion in back taxes and penalties for its purchase of an Indian mobile operator.

The dispute centered on Vodafone’s $11 billion purchase in 2007 of a majority stake in the Hong Kong-based Hutchison Whampoa’s Indian mobile unit.

Vodafone had said it believed India had no right to tax the transaction between two foreign entities.

Indian tax officials contended Vodafone should have withheld the amount the vendor was due to pay capital gains tax.

Analysts say Friday’s ruling removes uncertainty for foreign companies investing in India.