In a big relief to Foreign Institutional Investors (FIIs) , a government appointed committee has recommended that there is no case for imposing Minimum Alternate Tax (MAT) on FIIs retrospectively. Sources said the government is considering this suggestion of A P Shah Committee favourably. The Committee was appointed to go into question of levy of MAT on capital gains made by FIIs and had submitted its report to the Finance Minister about a month back. It saw no legal basis for levy of 20 per cent MAT on past capital gains. In its report, the Shah panel recommended relief for FIIs from paying MAT. The tax department has sent notices to 68 foreign institutional investors demanding around 603 crore rupees as MAT dues of previous years. This had raked up a controversy with FIIs moving the court challenging it. Arun Jaitley in the Budget for 2015-16 had exempted FIIs from paying MAT with effect from April this year.