Supreme Court defers hearing on minimum alternate tax to Sept 29

The Supreme Court postponed a hearing on whether the controversial minimum alternate tax (MAT) can be imposed on foreign investors after the government asked for more time to prepare its stance, a lawyer involved in the case said.

Initially scheduled for Tuesday, the hearing will now be held on Sept. 29, the lawyer said, declining to be identified discussing court matters.

The hearing will address a broad legal challenge filed by Mauritius-based Castleton Investment Ltd, which largely involves a separate case over the transfer of shares.
 

 

However, the challenge by Castleton includes a provision questioning whether MAT can be applied to foreign investors, a matter that has gained importance after tax authorities started imposing the tax on overseas funds late last year, sparking a big outcry.

The delay in the hearing comes after the government asked the Supreme Court for additional time to establish its position on the matter, seeking time to incorporate the findings of a report compiled by a government-appointed panel, according to the lawyer.

The report has been submitted to the finance ministry but has not been made public.