The Supreme Court is hearing a petition filed by Castleton on levy of MAT, while there is also another case on the same, pending before the Bombay High Court.
Earlier, in 2012, AAR directed Castleton to pay MAT in India on their book profits when it transferred shares from a Mauritius entity to a Singapore one.
The Income Tax department had sent notices to 68 foreign institutional investors (FIIs) demanding Rs 602 crore as MAT dues of the previous years.
This has raked up a controversy, with FIIs moving the higher court, challenging the MAT demand.
Following the announcement of setting up of the panel, headed by Law Commission Chairman A P Shah and including former Chief Economic Advisor Ashok Lahiri and Chartered Accountant Girish Ahuja as members, the tax department has directed its field officers to put on hold issuance of fresh notices and any further assessments on levy of this tax on such entities.
Crux of the issue is whether the government will waive MAT prior to April 2015. From the current financial year, MAT, is anyway, not leviable on FPIs.
Das further said other legacy tax issues would be referred to the Shah committee in due course. Though he did not refer to specific issues, one of these issues is retrospective amendment to the Income Tax Act, that has also drawn flak from foreign investors.