"27 March 2019" Archive

What is a Letter of credit? How it is useful in trade?

Article explains What is a Letter of credit, Parties involved in letter of credit, Step by Step procedure for issuance of a letter of credit, What are the different types of letter of credit, Difference between Letter of Understanding(LOU) and LOC, What was PNB scam? Why LOU was banned by the RBI and How a […]...

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Posted Under: Finance |

Transfer of shares in physical form to be stopped from April 1, 2019

All the investors who are holding shares etc. in physical form, should consider opening a demat account at the earliest and submit request for dematerialization of their shares in order to protect the liquidity of the shares. Utilise this mandate to demat them so you and your family can actually make use of the wealth locked in them....

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Posted Under: Finance |

Refund of tax under unconstitutional provision of statute will be outside the scope and purview of such enactment

Casa Grande Co-Operative Housing Vs Commissioner of CGST (CESTAT Mumbai)

Casa Grande Co-Operative Housing Vs Commissioner of CGST (CESTAT Mumbai) When any provision in the statute has been held to be unconstitutional, refund of tax under such statute will be outside the scope and purview of such enactment and under such circumstances, refund can be claimed by way of a suit or by way of a […]...

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List of companies involved under issuance of bogus invoice for claiming ITC

Alert Notice No -01/2018-19 (27/03/2019)

DIRECTORATE GENERAL OF GST INTELLIGENCE VISAKHAPATNAM ZONAL UNIT DOOR NO.28-14-17, SURYA BAGH, BESIDES MELODY THEATRE VISAKHAPATNAM-530020 Tel: 0891-2535250/2733847  Fax:0891-2528677  Email: dggi-vzu@gov.in F. No. DGGI/VZU/INV/GST/13/2019/1130: 11614 11671: 1187 Dated: 27.03.19 ALERT NOTICE NO – 01/2018-19 Sub.: Alert Notice regar...

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Wholly Owned Subsidiary of Foreign Company

I. Meaning: Wholly owned subsidiary is an incorporated entity formed and registered under the Companies Act, 2013. It is a distinct legal entity, apart from its shareholders. II. Constitution: 1. Company form of organization 2. Separate legal entity III. Requirement of Prior Approval of RBI: Not required In case of FDI in sectors permitte...

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Posted Under: Finance |

Note on Shares And Convertible Note

1. INTRODUCTION: A Private Limited Company in India can raise the funds through various sources using different types of instruments. The widely used instruments in fund raising are Equity Shares and Preference Shares. Convertible notes are emerging concept in India but the same is allowed only to Startups recognized by Govt of India and ...

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Posted Under: Finance |

Penalty u/s. 271E cannot be levied in case of bonafide belief

Ms. Orison Transport Vs DCIT (ITAT Cuttak)

Penalty u/s.271E was not leviable as the belief of assessee that return of advance from customers was not prohibited by section 269T was a bonafide belief....

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HC grants conditional anticipatory bail in fake invoice Case

Sri Avinash Aradhya Vs Commissioner of Central Tax (Karnataka Higth Court)

High Court in the case of assessee had held that by taking into consideration the gravity of the offence and punishment which was liable to be involved where assessee was indulged in issuing fake invoices without actual supply of goods with an intention to fraudulently avail the input tax credit, accused assessee's were given anticipatory...

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Disclosing Reason to Believe

‘Reason to believe’ is a mysterious term. Nobody knows what is reason to believe, or how to judicially determine the issue. As a matter of practice, it is generally not disclosed by the revenue. This article is an effort to understand the provisions related to “reason to believe” and legal lacuna therein. Examination of th...

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Posted Under: Finance |

An Analysis of Beneficial Ownership Rules

This paper analyses the 2018 amendment which introduces 'beneficial ownership rules' and introduces 'significant' beneficial ownership in India. However, since it is recent, there is a lot of scope to determine how it should be interpreted, in a manner that should fall within the object of the 2017 amendment, which is to curb money launde...

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Posted Under: Finance |

Gain on sale of agricultural land after conversion into plots not exempt from tax

Synthite Industrial Ltd. Vs CIT (Kerala High Court)

Synthite Industrial Ltd. Vs CIT (Kerala High Court) Admittedly, the assessee purchased the land which was a rubber estate. The land was purchased to utilize it for the non-agricultural purpose of expansion of its factory. The rubber trees in the land were slaughter tapped which is a process that immediately precedes the cutting and remova...

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Real Estate – New GST Rates and Challenges ! (Complete Analysis)

Article contains Guide on new GST rates on real estate in India and covers New GST Rates on Real Estate,  Types of real estate transactions, Rate of GST on real estate before 31st March 2019...

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Posted Under: Finance | ,

Introduction to Real Estate (Regulation & Development) Act, 2016 (RERA)

Real Estate (Regulation & Development) Act, 2016 Objective To establish the Real Estate Regulatory Authority. Regulation and Promotion of the Real Estate Sector; To ensure sale of plot, apartment or buildings or sale of real estate project in an efficient and transparent manner; To protect the interest of the consumers in real estate ...

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Posted Under: Finance |

An understanding about PAN-Permanent Account Number

WHY TO GET A PAN NUMBER OR PAN CARD? Obtaining PAN is may be optional or voluntary like passport, driving license, Aadhaar etc. However, its use is mandatory at required places, like PAN for high-value financial transactions, Driving License for motor driving, passport for foreign travel and more. For payment of direct taxes To file [&hel...

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Posted Under: Finance |

Save Tax U/s 80C – ELSS – Lowest Lock in Period

Last two days to save tax. It’s time to submit investment proof, please do not confuse yourself with wrong choice of Investments. I would recommend ELSS as tax saving instrument because of following reasons- Lowest lock-in period When you make any investment, the next thought is how and when you will be able to redeem […]...

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Posted Under: Finance |

Independent Director : A crown of thorns

Introduction  Though India has one of the best corporate governance framework, still we are witnessing the corporate scams, poor corporate governance which leading to corporate governance as an unfinished agenda for regulators and this  creating the need for further reforms in corporate governance. The expectations of regulators from in...

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Signing of CbC Report Exchange agreement between India & USA

India and the United States of America have today, the 27th March, 2019, signed an Inter-Governmental Agreement for Exchange of Country-by-Country (CbC) Reports. ...

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No proceedings can be taken against Director of a private limited company U/s. 26C of Kerala General Sales Tax Act, 1963

Anoop Raj Vs Dy. Tahsildar (Rr) Aluva (Kerala High Court)

Anoop Raj Vs Dy. Tahsildar (RR) Aluva (Kerala High Court) The petitioner, the Director of a private limited company is before this Court challenging the revenue recovery proceedings. The petitioner had two contentions; one that the provisions of Section 26C of the Kerala General Sales Tax Act, 1963 is unconstitutional and the next that th...

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Chairperson, Lokpal administers oath of office to Members, Lokpal

The Chairperson, Lokpal, Sh. Justice P. C. Ghose administered the oath of office to the following Members of Lokpal at a function organised here today: 1. Sh. Justice Dilip Babasaheb Bhosale 2. Sh. Justice Pradeep Kumar Mohanty 3. Smt. Justice Abhilasha Kumari 4. Sh. Justice Ajay Kumar Tripathi 5. Sh. Dinesh Kumar Jain 6. Smt. […]...

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Posted Under: Finance |

Cabinet Approves creation of Additional posts in NCLT

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved creation of additional posts of three Judicial Members and three Technical Members in the National Company Law Appellate Tribunal (NCLAT)....

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HC allowed deduction U/s. 10AA as new unit was not formed by transferring any machinery or plant previously used

Pr. CIT Vs. Macquarie Global Services Pvt. Ltd. (Delhi High Court)

Pr. CIT Vs. Macquarie Global Services Pvt. Ltd.  (Delhi High Court) The respondent-assessee had set up a new unit in Special Economic Zone (SEZ) income from which was claimed as exempt under Section 10AA of the Act for a period of ten years commencing from the Assessment Year 2010-11. Exemption was allowed in the Assessment […]...

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Section 54F not prescribes date of commencement of construction of house property

Tarun Jalali Vs DDIT (ITAT Delhi)

Tarun Jalali Vs DDIT (ITAT Delhi) Where construction of house was commenced even before the date of transfer of original asset, but it was completed within three years after the date of transfer, deduction under section 54F was admissible. Sub-section 4 of section 54F prescribes appropriation of sale consideration of original asset toward...

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GST AAR Karnataka allows NMDC to withdraw its application

In re M/s NMDC Limited (GST AAR Karnataka)

In re M/s NMDC Limited (GST AAR Karnataka) Whether credit of service tax paid on Operation & Maintainenance service received by the applicant in Pre-GST regime can be claimed as Input Tax credit under section 140(5) of the GST Act 2017 in case invoices for such services were received after the appointed date. But the […]...

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You can still file your ITR for A.Y. 2018-19 (F.Y. 2017-18)

You can still file your ITR for A.Y. 2018-19 (F.Y. 2017-18) by 31 st March, 2019 with a late fee of Rs. 10,000/- if you have not filed yet. It is easy,  Let us show you how in simple steps Step 1: Register Register at e-filing portal (www.incometaxindiaefiling.gov.in) using PAN Step 2: Prepare and submit Return  […]...

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Posted Under: Finance | ,

Interest paid to earn Interest is deductible under section 57

Pr. CIT Vs Jubilant Energy Nelp-V- Pvt. Ltd. (Delhi High Court)

Pr. CIT Vs Jubilant Energy Nelp-V- Pvt. Ltd. (Delhi High Court) Money received by the respondent-assessee under the ICDs of Rs. 55.30 Crores was in the preceding year. Rs. 50 Crores was thereafter transferred and given as ICDs to M/s Jubilant Enpro Private Limited also in the preceding year. There was a nexus between the […]...

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FAQs on filing form INC-22A (ACTIVE)

Query 1:  Is further extension allowed in filing of form INC-22 A? Answer:  No further extension is allowed in filing form INC-22A and due date will be April 25, 2019. Query 2: should the registered office name board to be in english and regional language as well? Answer: Yes, it is suggested that name board […]...

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Posted Under: Finance |

Notification No. 26/2019-Customs (N.T.) Dated: 27.03.2019

Notification No. 26/2019-Customs (N.T.) (27/03/2019)

Notification No. 26/2019-Customs (N.T.) CBIC hereby appoints Commissioner of Customs, Chennai (Import), Chennai-II to act as a Common Adjudicating Authority ...

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Notification No. 15/2019-Customs (N.T./CAA/DRI), Dated: 27.03.2019

Notification No. 15/2019-Customs (N.T./CAA/DRI) [S.O. 1453(E)] (27/03/2019)

Notification No. 15/2019-Customs (N.T./CAA/DRI) Principal Director General, Revenue Intelligence, hereby appoints officers mentioned in column (5) of the Table below to act as a common adjudicating authority...

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Notification No. 14/2019-Customs (N.T./CAA/DRI), Dated: 27.03.2019

Notification No. 14/2019-Customs (N.T./CAA/DRI) (27/03/2019)

Notification No. 14/2019-Customs (N.T./CAA/DRI) Principal Director General, Revenue Intelligence, hereby appoints officers mentioned in column (5) of the Table below to act as a common adjudicating authority...

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Notification No. 13/2019-Customs (N.T./CAA/DRI), Dated: 27.03.2019

Notification No. 13/2019-Customs (N.T./CAA/DRI) (27/03/2019)

Notification No. 13/2019-Customs (N.T./CAA/DRI) Principal Director General, Revenue Intelligence, hereby appoints officers mentioned in column (5) of the Table below to act as a common adjudicating authority...

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CBDT enables Facility to view Form 2 Declaration filed with DPIIT

Facility to view Form 2 Declaration filed with DPIIT by startup available in Income tax e-Filing portal CBDT has enabled Facility to view Form 2 Declaration filed with DPIIT (Department for Promotion of Industry and Internal Trade) by a startup on its e-filing portal. Form 2 (Section 56 Exemption declaration) is a Declaration by a [&helli...

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Posted Under: Finance |

Anti –Profiteering- Dealer cannot escape Responsibility on the ground that he does not have control over pricing

Kerala State Screening Committee on Anti-Profiteering Vs M/s. Win Win Appliances (National Anti-Profiteering Authority)

Respondent cannot escape the legal obligation which was imposed upon him by Section 171 of the CGST Act, 2017, by shifting his accountability on this ground. Therefore, the above contention of the appellant cannot be accepted....

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Transfer of Securities only in Demat Form from 01.04.2019: SEBI

PR No.: 12/2019 (27/03/2019)

Transfer of Securities of Listed Companies only in Demat Form – SEBI Clarification The Board (SEBI), on March 28, 2018, decided that except in case of transmission or transposition of securities, requests for effecting transfer of securities shall not be processed unless the securities are held in dematerialized form with a deposito...

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Applicability of RCM on Royalty paid to Authors

Whether GST under Reverse Charge Mechanism is applicable on Royalty paid to Authors? Will GST be paid by Publisher if the payment is made to legal heirs of the author or when the recipient of royalty is an University or Corporate Entity – domestic or foreign or trust, etc? CBIC vide Notification No 13/2017 – […]...

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Posted Under: Finance |

7 Rules to Follow When Taking a Loan

If we had enough money for all our needs, the world would have been a happy place. But the reality is different. Needs of modern households are constantly growing but earnings are not growing in the same proportion. This necessitates the need of loan to meet various expenses like buying a house, arranging a grand […]...

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Posted Under: Finance |

Top Small Business Loan offered by the Government

The MSME (Micro Small and Medium Enterprises) sector in India is expanding at a very fast pace and because of their increasing expansion, the Government time and again introduces new business loan schemes for this sector. The loan schemes are initiated through some of the programmes as mentioned below: A. MUDRA (Pradhan Mantri Mudra Yojan...

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Deduction u/s 10B allowable based on approval from STPI despite non-ratification by Board

DCIT Vs Ms Hitech Infosoft (ITAT Ahmedabad)

Deduction under section 10B could not be denied on the ground that the approval of STPI units of the assessee was not ratified by the Board of approvals as mandated u/s 10B....

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Due date for Filing Income Tax Return for HUF Partner- Belated return cannot be revised

Ajay Kumar Gupta (HUF) Vs ACIT (ITAT Delhi)

Since assessee was an HUF and HUF itself could not become a working partner in the partnership firm, therefore, the due date of filing of the return applicable to assessee was 31st July of the relevant assessment year and belated return filed by assessee could not be revised....

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Reassessment based on material available during original scrutiny assessment not permitted

Precilion Holdings Limited Vs DCIT (Bombay High Court)

Precilion Holdings Limited Vs DCIT (Bombay High Court) Conclusion: AO was not permitted to reopen assessment merely because in the later year, he took a different view on the basis of similar material available at the time of original scrutiny assessment as there was no failure on the part of assessee to disclose truly and […]...

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Sec. 41(1) addition cannot be made for liabilities that had not ceased

M/s. Hindustan Vegetable Oils Corp. Ltd. Vs DCIT (ITAT Delhi)

AO was unjustified in making addition under section 41(1) on the reason that sundry creditors and other liabilities had ceased to exit as the opening balances of the liabilities were already admitted in the immediately preceding assessment years and the issue for revival was pending before BIFR because of which the creditors remain suspen...

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HC quashes Notice for re-assessment based on change of opinion

Bharti Infratel Limited Vs DCIT (Delhi High Court)

Bharti Infratel Limited Vs DCIT (Delhi High Court) Conclusion: Notice for re-assessment issued under Section 148 against assessee-company was quashed as assessee had made full and true disclosure of material facts; nothing was concealed, withheld and left to be factually discovered in the form of ‘material’ mentioned in detail in acco...

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Admissibility of deduction under section 80TTB- Confusion clarified

Circular No.01/2019 - IncomeTax (26/03/2019)

In Circular No.1/2019 dated 1st January, 2019 on the above- mentioned subject, the provisions of section 80TTB were not correctly explained in para 5.5.12 of the circular. In the said circular, it is written that, Interest on deposits (Not being the time deposit) i.e. Interest on saving deposit would be allowed to be deducted in […...

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Posted Under: Finance |

Amendments to SEBI Listing Regulations: Payment for royalty & brand usage

PR No. 11/2019 (27/03/2019)

As per Regulation 23(1A) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, payments made to related parties towards brand usage or royalty are to be considered material if the transaction(s) exceed 2% of the annual consolidated turnover of the listed entity during a financial year....

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Taxability of rent when leasing is main object of assessee

Ambattur Infra Developers Vs DCIT (ITAT Chennai)

Main object of the assessee firm, as laid down in the partnership deed, includes leasing of industrial park hence the income of the assessee both from leasing the space as well as providing maintenance services had to be considered only under the head income from business....

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Checklist, Procedure, Documents required for filing of Form Inc-22A

Detailed Checklist, Procedure and Documents required for filing of Form INC-22A, ACTIVE (Active Company Tagging Identities and Verification) and Effect Of Non-Filing or delayed filing of Form INC-22A. Documents and Details Required For Filing The Form INC 22A (Active): 1. E-mail ID of the Company (the mail ID will be verified by OTP); 2. ...

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Posted Under: Finance |

Tax on Monthly or Lump sum Alimony Money post Divorce

Lump Sum Settlement Money received at time of Divorce or Monthly Alimony Money received is Taxable in Income Tax Law? A divorce is the legal termination of a marriage by a court in a legal proceeding, requiring a petition or complaint for divorce (or dissolution in some states) by one party. There are two types […]...

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Posted Under: Finance |

Exemption to trust on Property used as Residence of Chairman & for charitable activities

ACIT Vs St. Thomas Orthodox Church Society (ITAT Delhi)

In order to carry out the charitable activities, the Chairman of the society needs accommodation otherwise he would have to be put in rented accommodation and hence the same eligible for benefit of section 11 and 12....

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Investment in debt scheme and consequent income tax

In long-term capital gains, one must calculate tax with and without indexation and avoid dividend plans while making any debt-related investment. While making any investment decision, one needs to understand each and every detail of the income as it’s an investors right to maximise the investment if there is any option available. In...

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Posted Under: Finance |

Conditions in Certain Cases for Issue of Capital Instruments in FDI

Streamlining of Issue of shares through Rights Issue and Bonus Issue The NEW FDI Regulations have streamlined the issue of shares under the right issue and bonus issue subject to adherence: 1. The offer made by the Indian company is in compliance with the provisions of the Companies Act, 2013 2. Such issue shall not […]...

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Clarification on treatment of sales promotion schemes under GST

The Principal commissioner(GST) of Central Board of Indirect Taxes and Custom vide its Circular No. 92/11/2019-GST dated 7th March 2019 has clarified the following issues:- 1) Free samples and gifts: As per sub clause (a) of sub-section (1) of section 7 of the said Act, the expression “supply” includes all forms of supply of goods [&h...

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Posted Under: Finance |

GST Update on Proposed changes in GST e-Waybill system

National Informatics Centre (NIC) which maintains the GST E-Way Bill Portal has released a document on the proposed changes in the e-way bill portal. Some of the important changes being – 1. Auto Calculation of route distance based on Pin Codes 2. Blocking of generating multiple e-way bills on same document 3. Extension of validity ...

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Posted Under: Finance |

CA Final Exam dates Extended – Opportunity or Tension..??

Finally election dates are declared and finally the confusion that was going in the mind about exams is also over. So, since the exam dates are extended, I observed three types of students around: 1. The over confident one:These are the students who stopped studying even before election announcement having a pre set notion in […]...

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Is PM Narendra Modi already giving to Poor Much More than what Congress Promises?

No political party has betrayed India for more than seven decades other than the Congress Party. It gave to the people of India many slogans and very little resources to implement them....

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Posted Under: Finance |

Presumptive inference provided by Informant cannot be basis for forming a prima facie opinion

Ravi Pal Vs All India Sugar Trade Association (AISTA) (CCI)

Ravi Pal Vs All India Sugar Trade Association (AISTA) (CCI) After appreciation of the allegations of the Informant and documents submitted including the oral submissions made by the Informant, the Commission is of the view that no evidence has been provided by the Informant to show that there was any meeting of minds between the […...

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