Supreme Court Rules Tiger Global Must Pay Tax on 2018 Flipkart Stake Sale

The Supreme Court of India ruled that Tiger Global must pay capital gains tax on its 2018 sale of Flipkart shares to Walmart, overturning a Delhi High Court decision that had exempted the firm under the India-Mauritius Double Taxation Avoidance Agreement (DTAA). The court found the transaction was structured as an impermissible tax avoidance arrangement, emphasizing economic substance over legal form and limiting treaty benefits for entities lacking genuine commercial substance. This landmark ruling impacts foreign investment structures and treaty interpretations in India.