Corporate Affairs Ministry has asked its regional directors to seek the views of Income Tax Department before presenting the government stand to courts in cases related to amalgamation or arrangements of companies.
Besides, the ministry has said that the directors should also check if feedback from other sectoral regulators is required in certain cases.
The directors will have to invite comments or inputs from the Income Tax (I-T) department and sectoral regulators within 15 days of receiving the notice from the court, the ministry said in a circular.
"It is decided that while responding to notices on behalf of the central government...The regional director concerned shall invite specific comments from income tax department within 15 days of receipt of notice before filing his response to the court," it said.
"If no response from the income tax department is forthcoming, it may be presumed that the income tax department has no objection to the action proposed," it added.
The ministry has further emphasised that it is not for the regional director to decide "correctness or otherwise of the objections/views of the income tax department or other regulators".
The directives come after an instance wherein a regional director had not projected the objections of the I-T department in a case.
The circular said: "If there are compelling reasons for doubting the correctness of such view, the regional directors must make a reference to this ministry (Corporate Affairs) for taking up the matter with the ministry concerned before filing the representation."
Regional directors have been mandated to file representations in courts on behalf of the central government in cases involving arrangement/compromise or amalgamations of companies.
