SC Overturns Delhi HC, Backs Tax Dept in Tiger Global's $1.6B Flipkart Exit Case

• The Supreme Court ruled that capital gains from Tiger Global's $1.6-billion exit from Flipkart in 2018 are taxable in India, overturning a Delhi High Court judgment.
• This decision impacts how India taxes foreign investment and interprets the India–Mauritius Double Taxation Avoidance Agreement (DTAA).
• The dispute centered on whether Tiger Global's Mauritius entities were genuine or merely 'front' entities to avoid Indian tax on its Flipkart stake sale during Walmart's acquisition.
• Tiger Global had invested in Flipkart through Mauritius entities, leveraging the 1983 tax treaty which allowed Mauritius residents to sell Indian company shares without capital gains tax in India.
• The SC sided with the tax department, asserting that the real control and decision-making for Tiger Global's investments lay in the US, not Mauritius.

Why It Matters: Supreme Court upholds Indian tax on Tiger Global's Flipkart exit, impacting foreign investment and DTAA interpretation.