New York-based private equity (PE) investor Tiger Global, on Monday (September 21), moved to the Delhi high court against the Authority of Advance Ruling (AAR) ruling, which denied the company of grandfather provision benefits under the India-Mauritius Double Tax Avoidance Agreement after the Flipkart exit in 2018.
The matter is listed to be heard today (September 22). People close to the matter told Mint that the AAR has not looked into all the aspects of the deal, before denying treaty benefits to Tiger Global. “There is enough substance and decision making in the deal structure to get India-Mauritius treaty benefits,” the person added, seeking anonymity.
Tiger Global had invested in Flipkart through Mauritius-based Tiger Global International II, III and IV Holdings. Later in 2018, it had sold its stake in Flipkart’s Singapore-based entity to Walmart’s Luxembourg entity FIT Holdings for over INR 14,500 Cr in 2. After the deal, Tiger Global had sought tax exemptions on capital gains with the income tax department under Section 197 of the Income Tax Act. However, the department had rejected the application.
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