Supreme Court to rule on Tiger Global’s 2018 deal with Walmart: Here’s the timeline of the case

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Supreme Court of India is likely to rule on whether or not to levy tax on Tiger Global’s $1.6 billion Flipkart stake sale to Walmart in 2018. This landmark ruling will determine the legality of international tax-treaty use by firms regarding the 2018 transaction.

The court battle, being closely followed by overseas investors, concerns how Tiger Global used the India-Mauritius tax treaty to claim tax exemptions, as well as New Delhi’s strong objections. The verdict will affect how India uses tax principles in cross-border transactions.

Tiger Global and Indian tax authorities are embroiled in a court battle over its 2018 equity sale in Indian e-commerce business Flipkart to Walmart for 144.4 billion rupees ($1.6 billion).

According to Mukesh Butani, managing partner of Indian law firm BMR Legal, which advises clients on international tax laws and treaties, “The ruling is likely to redefine the treaty interpretation law,” Reuters reported.

Following is a timeline of the case and developments so far:

January 2025 | In January, the apex court stayed the Delhi High Court’s ruling exempting Tiger Global International III Holdings and its connected businesses from capital gains tax in the Flipkart share sale to Walmart. The bench also issued a notice to Tiger Global in response to a plea filed by the Authority for Advanced Ruling (Income Tax) (AAR) challenging the HC ruling.

August 2024 | In 2024, the Delhi HC ruled in favour of ‘Tiger Global International III Holdings’, exempting the company from paying capital gains tax on share sales under the India-Mauritius DTAA. The HC overturned an AAR decision from 2020 that granted Tiger Global the India-Mauritius Double Tax Avoidance Agreement (DTAA) on the basis that the transaction was intended to avoid tax.

May 2024 | The Delhi High Court reserved its judgment on Tiger Global’s petition challenging the AAR ruling.

March 2020 | The AAR rejected Tiger Global’s plea, ruling the transaction was structured for tax avoidance.

2019 | TGI approached the Income Tax Department (ITD) in 2019 to request an exemption from paying capital gains taxes due to the benefits given by the India-Mauritius DTAA. The corporation relied on Article 13(3A) of the DTAA, which exempts ‘Mauritian residents’ from Indian capital gains tax for shares purchased before April 1, 2017.

2018 | Between 2011 and 2015, TGI acquired shares of Flipkart Singapore, which had significant investments in Flipkart India, and then sold them to Walmart in 2018, resulting in capital profits.