Supreme Court Rules Tiger Global's Flipkart Exit Taxable, Sets Precedent on Treaty Benefits

The Supreme Court ruled that Tiger Global must pay capital gains tax on its $1.6 billion Flipkart stake sale, overturning a Delhi High Court decision. The court found that Tiger Global's Mauritius-based entities lacked commercial substance and were used for impermissible tax avoidance, denying treaty benefits under the India-Mauritius Double Taxation Avoidance Agreement. This landmark judgment emphasizes substance over form, empowers tax authorities to scrutinize offshore structures, narrows grandfathering protections, and may prompt reassessment of similar foreign investments, impacting India's cross-border investment climate.