The Delhi High Court has ruled in favor of Tiger Global, dismissing the tax department's claim that the firm's Mauritius-based entities were mere facades to avoid capital gains tax in the 2018 Flipkart-Walmart deal. The court upheld the validity of tax residency certificates (TRCs) issued by Mauritius, emphasizing that investments through Mauritius shouldn't be viewed with suspicion. This decision reassures foreign investors who benefited from tax treaties before 2017 and strengthens Mauritius' position as a financial hub. The ruling is expected to be contested by the tax authorities in the Supreme Court.
