Income Tax Department to Reassess Tiger
Global Case After Supreme Court Ruling
¨
India’s Income Tax
Department is set to resume reassessment proceedings against Tiger Global
Management following a decisive ruling by the Supreme Court of India.
¨ Officials have clarified
that recent amendments to tax rules under the General Anti-Avoidance Rules
(GAAR) will not dilute the impact of the judgment, signalling continued
enforcement in high-value cross-border tax disputes.
Supreme Court Verdict Clears Way for
Recovery
¨ The apex court ruled that
Tiger Global’s gains from the 2018 sale of its stake in Flipkart are taxable in
India.
¨ It held that the
transaction constituted an impermissible tax avoidance arrangement, thereby
denying treaty benefits under the India-Mauritius Double Taxation Avoidance
Agreement.
¨ This overturned earlier
relief granted by the Delhi High Court and enabled authorities to pursue
recovery of capital gains tax on estimated gains exceeding ₹14,500 crore.
