Supreme Court Upholds Taxability of Tiger Global's Flipkart Exit Gains

The Supreme Court of India has confirmed that capital gains from Tiger Global's exit from Flipkart in 2018 are taxable in India. This decision overturns the Delhi High Court's ruling that favored Tiger Global, concluding that the company's arrangement was a tax-avoidance scheme.

The Supreme Court on Thursday affirmed the Indian revenue authorities' decision that capital gains from US investor firm Tiger Global's 2018 exit from Flipkart are taxable in India.

A bench featuring Justices J B Pardiwala and R Mahadevan overruled the Delhi High Court's August 2024 decision that had quashed the tax demand, ruling against Tiger Global.

The court noted that the organizational structure demonstrated the transactions involved were part of a tax-avoidance scheme, disqualifying Tiger Global from claiming benefits under Article 13(4) of the DTAA.

(With inputs from agencies.)