SC rules against Tiger Global in taxation claim over 2018 stake sale in Flipkart, ETCFO
In a landmark ruling on international tax-treaty use by the companies, the Supreme Court on Thursday set aside the Delhi High Court’s judgment that exempted Mauritius-registered private equity firm Tiger Global International III Holdings and its related entities from capital gains tax in the Flipkart stake sale to US retailer Walmart in 2018.
The HC had in August 2024 overturned a 2020 decision by AAR, which had denied the India-Mauritius Double Tax Avoidance Agreement (DTAA) benefits to Tiger Global on the grounds that the transaction was prima facie designed to avoid tax.
The AAR had in March 2020 also said that the India-Mauritius treaty did not intend to exempt capital gains from the transfer of shares in non-Indian companies.
