Supreme Court Denies Tiger Global Treaty Benefits, Calls for Clear Tax Substance Guidelines

The Supreme Court ruled against Tiger Global, denying treaty benefits on its Flipkart stake sale via Mauritius, citing lack of commercial substance despite valid tax residency certificates. The court emphasized that treaty benefits require genuine business activity beyond paper entities. This decision highlights uncertainty over criteria defining 'substance' in tax treaties. The Delhi High Court urged tax authorities to adopt pragmatic, justice-oriented approaches rather than focusing on revenue, stressing ease of doing business. Stakeholders call for clear administrative guidance to implement the ruling effectively.