Setback to Tiger Global in Flipkart Deal: Supreme Court stays DTAA Benefits, says ‘Through Consideration Required’

Tiger Global has faced a setback in its case concerning Flipkart’s deal, with the Supreme Court staying the Double Taxation Avoidance Agreement (DTAA) benefits. The court’s ruling indicates that the consideration required for tax purposes in the deal is insufficient, leading to a re-evaluation of the transaction. This decision is significant, as it affects how multinational deals involving tax treaties and cross-border investments are structured. The ruling could set a precedent for similar cases in the future, particularly in relation to tax benefits and the legal requirements for transactions under DTAA. The case underscores the importance of thorough compliance with tax laws when structuring international business transactions.