BREAKING THE MAURITIUS ROUTE : A JURISPRUDENTIAL SHIFT IN TIGER GLOBAL

This case note examines Authority for Advance Rulings (Income Tax) v. Tiger Global International II Holdings, where the Supreme Court of India reconsidered the scope of treaty benefits under the India-Mauritius DTAA. The Court held that a Tax Residency Certificate is not conclusive proof of treaty entitlement and that benefits may be denied where an arrangement lacks commercial substance. It further clarified that GAAR can apply where the tax benefit arises after its enforcement and that the DTAA's grandfathering clause does not protect abusive structures. By holding the capital gains taxable in India, the judgment signals a shift from the treaty-formalism reflected in Union of India v. Azadi Bachao Andolan toward a substance-based anti-avoidance approach in Indian international tax law.