TAX TUSSLE

■ India says US court lacks subject-matter jurisdiction under Foreign Sovereign Immunities Act in the dispute

■ Cairn moved the court in May to force Air India to pay the $1.2 billion arbitration award it had won in December

■ It contended Air India and the Indian government were “alter egos” and the airline should be held liable for the award

■ Development comes a week after the govt enacted legislation to scrap retro tax

■ Govt has to refund about ~8,100 crore it had collected using retro tax law