The Bombay High Court on Tuesday asked the tax authority if it wants the court to continue hearing a case pertaining to minimum alternate tax or MAT filed by Aberdeen Asset Management.
Chief Justice Mohit Shah said this in the view of the recent announcement by the government to constitute a committee headed by Justice AP Shah to examine the matter relating to levying of MAT on Foreign institutional investors (FIIs) for the period prior to April 1, 2015.
The government decision came after an uproar following notices sent to FIIs for their alleged non-payment of capital gains tax on profits reported up to March 1, 2015.
The income tax department had sent 68 notices involving tax worth Rs 602.83 crore. “I have received instructions from the tax department to proceed with the hearing of the case,” said Charanjeet Chanderpal, income tax standing counsel in the high court.
Shah however, told Chanderpal to submit a written application by the tax department giving its approval for the hearing of the case.
The court has adjourned the Aberdeen case till 30 June. Several FIIs have contested the claims of the Indian tax department over payment of MAT on their past investments in stocks.
On 2 May, Aberdeen Asset Management through its fund Aberdeen Global Emerging Markets moved court against the final demand order by the income tax department.