High Court Stays Hearing in Aberdeen MAT Case

MUMBAI: The Bombay High Court on Tuesday accepted the tax department's plea to stay hearing on the minimum alternate tax (MAT) case involving Luxembourg investor Aberdeen Asset Management until the Supreme Court gives its ruling on another similar matter.
There are two separate MAT cases that the revenue department is fighting with foreign funds in courts -with Aberdeen in the Bombay High Court and Mauritius-based Castleton Investment in the SC.

On Tuesday, the department said in a written submission to a division bench comprising Chief Justice Mohit Shah and Justice AK Menon that it was waiting also for the views of the Justice AP Shah panel formed by the government to examine issues pertaining to MAT on foreign portfolio investors (FPIs). “The order in Castleton case is expected soon and the Shah committee will also soon table its report on the issue,“ said a senior department official. “The process could take a couple of months, but it will have much clarity.“

The issue began after the tax department sent a raft of notices to FPIs seeking MAT worth hun dreds of crores late last year.

The FPIs, how ever, are of the view that MAT cannot be levied on entities that don't have a bal ance sheet in In dia.

Following an uproar from for eign investors, the government decided to form a panel to study the matter and provide clarity on taxing FPIs.

Meanwhile, Charanjeet Chandrapal -the standing council of the tax authority , clarified that the department has not withdrawn the tax demand issued to Aberdeen under MAT.