Tiger in net, blackstone in woods: Supreme Court’s Tiger Global tax ruling could influence Blackstone dispute

After Tiger Global, all eyes are on Blackstone, another Wall Street biggie which is waging a high-profile legal battle with India’s tax office. The feud, dealing with key questions on taxability of foreign investors and whose outcome may be partly influenced by the recent Supreme Court verdict on Tiger Global, is currently before the apex court.

The Income tax (I-T) department had questioned the tax residency status of the Singapore arm of Blackstone (which had sold shares of an India company) on the grounds that the Singapore entity was controlled by Blackstone US. Since the US parent was the true beneficial owner of Blackstone Singapore, the latter, according to the tax office, was not in position to claim benefits under the treaty between India and Singapore.