Supreme Court Rules Flipkart Exit Gains Taxable for Tiger Global, ₹14,500 Cr at Stake

• The Supreme Court ruled that Tiger Global's 2018 exit from Flipkart is taxable in India, denying tax benefits under the India–Mauritius DTAA.
• This decision exposes Tiger Global to a potential tax demand of nearly ₹14,500 crore, marking a significant victory for the Income Tax department.
• The apex court overturned a Delhi High Court ruling, stating that Tiger Global's transaction structure amounted to treaty shopping and tax avoidance.
• The ruling emphasizes India's sovereign right to tax income within its borders and warns against surrendering such rights.
• The verdict has wide implications for foreign investors, including PE, VC, and FPIs, who used Mauritius-based entities for investments in India, potentially leading to increased scrutiny and tax demands on past and future exits.

Why It Matters: Supreme Court's ruling makes Tiger Global's Flipkart exit taxable in India, setting a precedent against treaty shopping.