The SC has sought to invoke the GAAR provisions (as codified in the domestic tax law) and has ruled the sale of shares of a Singapore company as an ‘impermissible avoidance arrangement’. It must be noted that the view sought to be adopted by Tiger Global was that since the shares of the Singapore Company were acquired prior to 1 April 2017, they were grandfathered from the perspective of the GAAR provisions. The SC struck down this argument on the basis that although the shares were acquired prior to 1 April 2017, since the sale transaction had occurred in financial year 2018-19 (a year where the codified GAAR provisions were in force), GAAR provisions would be applicable.
