India, Jan. 15 -- In a major setback for US-based Tiger Global, the Supreme Court has ruled against the investment firm in the tax liability case pertaining to its stake sale in Flipkart in 2018.

The SC set aside a 2024 Delhi High Court ruling in favour of the investor today and upheld the tax department's claim that capital gains made on Tiger Global's $1.6 Bn sale of Flipkart shares to Walmart were taxable in India, ET reported.

The judgment, pronounced by a bench of Justices JB Pardiwala and R Mahadevan, is being seen as a reversal of the India-Mauritius Double Taxation Avoidance Agreement (DTAA), and is expected to have a far reaching impact on how foreign investors are taxed in the country.

At the heart of the issue was Tiger Glob...