India's Supreme Court has ruled against investment firm Tiger Global, stating that it is liable to pay capital gains tax in India on the sale of its stake in e-commerce company Flipkart to Walmart in 2018. The verdict overturns a previous Delhi High Court judgment that had ruled in favor of the U.S. investment firm.
The dispute centered on Tiger Global routing its investment through Mauritius and claiming tax exemption under the India-Mauritius double taxation avoidance treaty. Indian tax authorities argued this structure was primarily for tax avoidance. The Supreme Court's decision upholds the tax department's view and is seen as a major win for Indian revenue authorities, establishing that such transactions are taxable in India. This ruling is expected to influence how foreign funds structure future investments into Indian assets.