Tax Dept Clarifies 'Tax Terrorism' After SC's Tiger Global Verdict

• Tax department sources clarify that not all disputes stemming from differing interpretations of law constitute "tax terrorism."
• The Supreme Court ruled on January 15 that capital gains from Tiger Global's exit from Flipkart are taxable under Indian laws, overturning a Delhi High Court decision.
• Tiger Global had argued for tax exemption based on the India–Mauritius DTAA and valid Tax Residency Certificates (TRCs) for investments made before April 1, 2017.
• CBDT officials stated that high tax figures in large transactions are due to scale, not aggressive action, and pending demands are often due to unresolved legal questions.
• The Income Tax department withheld a refund claim of Rs 967.52 crore, linking it to the outcome of the legal dispute over treaty eligibility, emphasizing the state's need to protect its tax base.

Why It Matters: Tax department clarifies that not all disputes are 'tax terrorism' following SC's Tiger Global ruling.