Authority for Advance Rulings (Income Tax) v. Tiger Global International Holdings II, III & IV

Introduction

The dispute arose from the sale of shares of Indian companies by several investment entities belonging to the Tiger Global Group, which were incorporated and tax resident in Mauritius. The Tiger Global entities claimed exemption from capital gains tax in India under the India–Mauritius Double Taxation Avoidance Agreement (DTAA), contending that Article 13 of the treaty allocated exclusive taxing rights over such gains to Mauritius.

The Income Tax Department challenged the claim on the ground that the Mauritius companies were merely conduit entities created for treaty shopping and lacked genuine commercial substance. According to the Revenue, the corporate structure had been designed primarily to avoid Indian taxes, and therefore the treaty benefits should be denied.