Foreign investors structured their investments on the basis of explicit government policy, binding circulars, and official affirmations that a valid Tax Residency Certificate confers treaty protection.

Contrary to above the Supreme Court has upheld the Income Tax Department’s claim against Tiger Global regarding its stake sale in Flipkart in 2018 for a consideration of ₹14,500 crore.

The order is seen to have upset the tax planning undertaken by investors. Investors are worried not just about transactions currently being negotiated, but also about earlier cases. India’s DTAA has undergone many changes over time. The latest Tiger Global judgment may lead to the reopening of many related cases.