Core Viewpoint - India's tax authority is set to cautiously reopen tax assessment proceedings against Tiger Global Management LLC regarding its 2018 stake sale in Flipkart Pvt., following a favorable Supreme Court decision, while respecting the company's right to appeal [1][3]. Tax Assessment Proceedings - The Central Board of Direct Taxes (CBDT) will revive tax assessment proceedings against three Mauritius-based entities of Tiger Global [2]. - If Tiger Global files an appeal against the Supreme Court's decision, the resumed tax proceedings will be automatically stayed until the judicial process concludes [3]. Government's Approach - The Modi administration is adopting a patient approach in complex tax matters, avoiding hasty actions amid global trade challenges [4]. - The government aims to enhance the business climate to attract global investors by providing tax certainty and avoiding rigorous audits of cross-border transactions [5]. Legal Rights and Tax Disputes - Taxpayers have a statutory right to appeal, and the Income Tax Department respects this right, awaiting the judicial process's outcome [6]. - Experts indicate that Tiger Global's options appear primarily procedural, with limited scope for international arbitration due to India's restrictive stance [8]. Tax Treaty Context - The case revolves around the renegotiated Double Tax Avoidance Agreement (DTAA) with Singapore, which previously allowed Mauritius to levy capital gains tax on sales of companies with Indian assets [9]. - Tiger Global contends that its sale of a controlling stake in Flipkart to Walmart Inc. for $16 billion should not be taxed under treaty provisions, with the sale generating significant capital gains exceeding ₹14,500 crore [10]. Assessment Proceedings and Refunds - Following the Supreme Court's judgment, assessment proceedings for the 2019-20 fiscal year will resume, and the previously withheld refund of approximately ₹967.52 crore will be addressed as part of the assessment process [11][12]. - The tax withholding was an interim measure, and the refund will now be part of the assessment and consequential demand proceedings [14].