After the Supreme Court’s recent ruling in the Tiger Global tax matter, attention has shifted to another major Wall Street player—Blackstone—which is locked in a high-stakes legal battle with India’s tax authorities. The outcome of the Tiger Global case is now expected to have a bearing on how the Blackstone dispute unfolds.

Blackstone’s case has majorly turned on basic issues concerning the taxability of foreign investors in India, especially questions of tax residency, treaty benefits, and beneficial ownership. The Indian tax authority has countered Blackstone’s arguments based on tax treaties by saying that just having a Tax Residency Certificate (TRC) may not be enough to claim treaty benefits if the real power and ownership are in a different location.

Similar arguments were examined in the Tiger Global case, where the Supreme Court scrutinised the substance of offshore investment structures rather than relying solely on documentation. The ruling has strengthened the tax department’s position that authorities can look beyond formal residency claims to determine the true nature of control and decision-making.

According to legal experts, the precedent set in the Tiger Global verdict could have a considerable effect on the interpretation of Blackstone’s arrangements, particularly on the issue of whether offshore entities can rightfully assert treaty protection. Should the courts use the same doctrines, it might have a profound effect on the structuring of India-directed investments by worldwide private equity and investment firms.

Due to the huge amounts involved and the broader consequences for foreign capital inflows, the Blackstone case is under the microscope of investors, tax consultants, and government officials. The ultimate ruling may change the tax framework for offshore investors in the Indian market.