This refers to ‘Substance over form’ (January 20). The recent Supreme Court ruling in the Tiger Global matter once again brings the doctrine of substance over form into sharp focus and highlights the ambiguity that arises when tax laws are interpreted expansively. Much like the Vodafone case, where the Court initially ruled in favour of the taxpayer before Parliament retrospectively amended the law citing misinterpretation, the present ruling underscores how judicial interpretation can significantly alter tax outcomes for offshore transactions. By holding that the value of Flipkart Singapore was substantially derived from underlying assets located in India, the Court effectively brought an offshore share transfer within the Indian tax net, despite the absence of direct geographical nexus.

Srinivasan Velamur

Chennai

Surge in silver prices

Apropos, ‘You now have to pay ₹3 lakh for a kg of silver’ (January 20). Escalating silver prices strain household budgets particularly during festival and wedding seasons, and adversely affect small jewellers and artisans. For industries reliant on silver, higher raw material costs may be passed on to consumers, fuelling broader price pressures.

N Sadhasiva Reddy

Bengaluru

Textiles’ multiplier effect

This refers to ‘Textiles sector driving growth, jobs’ (January 20). Textiles are semi-durable goods which means they have perpetual demand. What is impressive is that the increase in demand for textiles (consumer goods) stimulates the demand for sewing machines (capital goods), and boosts employment opportunities, income and output in the economy. Also, they earn considerable foreign exchange through exports. In short, they have a multiplier effect.

S Ramakrishnasayee

Chennai

SEZ reforms

This refers to ‘Govt mulls reforms to help SEZs leverage home market’ (January 20). Allowing SEZs to do reverse job work would give immense relief to them, which have been facing turbulent times, especially after the Trump tariff shocks. While the operationalised Export Promotion Mission would improve SEZs competitiveness, it is essential these units are assisted in moving away from their over-dependence on the US market.

Further, SEZ units may be incentivised to upgrade technologically and vigorously pursue R&D.

Kosaraju Chandramouli

Hyderabad

Published on January 20, 2026