"06 November 2020" Archive

Interest payable only on Gross GST Liability even Prior to Section 50 Amendment

KLT Automotive and Tubular Products Ltd. Vs Vikram Nankani (Bombay High Court)

The issue under consideration is whether interest under section 50 of the Central Goods and Service Tax Act, 2017 is to be levied on the gross tax liability? HC are of the view that no live issue survives for adjudication in this case. Recovery notices issued by the respondents are hereby quashed....

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No IGST (on import) is payable on DTA supplies by EOU

As per the Foreign Trade Policy 2015-20 (FTP), the 100% Export Oriented Units (EOU) are exempted from payment of duty of customs leviable thereon under the First Schedule to the Customs Tariff Act, 1975 and additional duty leviable under section 3 of the Customs Tariff Act, 1975. The exemption from custom duty and additional custom [&hell...

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MEF 2020-21 extended till 10th November 2020

It has been decided to extend the last date for filling the Multipurpose Empanelment Form for the year 2020-21 for further 4 days, i.e., till 10th November 2020, Tuesday to mitigate the difficulties being faced by the firms in uploading of necessary data....

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Section 54EC – ITAT explains deduction of Rs. 50 Lakh & Rs. 1 Crore

Sri Arun Kumar B M Vs ITO (ITAT Bangalore)

Arun Kumar B M Vs ITO (ITAT Bangalore) The Assessing Officer held that the assessee is required to invest Rs.50 lakh in REC Bonds in any financial year. The Assessing Officer also relied on the amendments made to section 54EC of the I.T.Act vide Finance Act, 2014 w.e.f. 01.04.2015. Assessee has filed this appeal before […]...

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No section 68 Addition in Absence of Primary & Independent Enquiry by AO

Homeway Marketing (P) Ltd. Vs ITO (ITAT Delhi)

The issue under consideration is whether the addition made u/s 68 for assessee helped various beneficiaries in providing accommodation entries in relation to capital and expenses is justified in law?...

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Scope of first appeal under GST act

It is provided in section 107 (1) that any aggrieved person by decision or order passed under the act by adjudicating authority may file appeal to the Appellate Authorities prescribed in the act. Similarly, as per section 107 (2) of the act authorised officer, on direction of Commissioner may make an application to such Appellate Authorit...

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You will receive notice from GST department if there is mismatch in your returns

You know that 3 years have passed since the enactment of GST laws, but many mistakes are still being committed by GST tax payers while filing GST returns particularly GSTR-3B and GSTR-1 due to negligence, oversight or due to lack of conceptual clarity on various provisions of the GST Acts and Rules. This problem of making […]...

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Guidelines for issue of Units by an Unlisted Infrastructure Investment Trust (InvIT)

1. Relevant Circular – SEBI Circular SEBI/HO/DDHS/DDHS/CIR/P/2020/223 2. Relevant Date – 4th November 2020 3. Relevant Chapter – Chapter VIA 4. Relevant Regulation SEBI (Infrastructure Investment Trusts) Regulations, 2014 5. Purpose of the Circular –  To enable Unlisted InvITs to raise further funds through right ...

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Place of supply of services | Section 13(1) to 13(13) | IGST Act, 2017

How to determine place of supply in various supply of services as per Section 13(1) to 13(13) under IGST Law, 2017 Dear Colleagues, Greetings of the day. Today I’m going to discuss about “How to determine place of supply in various supply of services under GST” under Sec.13 of IGST Act, 2017. Effective from 01.07.2017 […]...

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Procedure for Registration of Partnership firm in Andhra Pradesh

(I) Procedure to Form a New Partnership Firm:- Rules Prescribed in the Indian Partnership Act, 1932:- Under Section 58 of the Act, a firm may be registered at any time (not merely at the time of its formation but subsequently also) by filing an application with the Registrar of Firms (the District Registrar, Registration and […]...

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Complete Procedure for claiming Refund under Inverted Duty Structure!!

Accumulation of Input Tax Credit happens when the tax paid on inputs is more than the output tax liability. Such accumulation will have to be carried over to the next financial year till such time as it can be utilised by the registered person for payment of output tax liability. However, the GST Law permits […]...

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Important aspects one should know before filing the ITR

You must have heard about the extension in dates of filing ITR for FY 2018-19 (belated) & FY 2019-20. Here we will discuss about the dates and also some of the important aspects one should know with respect to changes in income taxes: Here’s a summary of extended dates 1. To file belated ITR for […]...

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COVID 19 Ex Gratia to borrowers for difference in interest : FAQs

The bank/ lending institution will provide ex gratia payment to the borrower account of the difference between compound interest and simple interest on loan accounts with sanctioned limits and outstanding upto Rs. 2 crores (aggregate of all the borrowings / facilities from all the banks and financial Institutions) for the period from 1st ...

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Income Tax Department conducts searches in Kerala

Release ID: 1670628 (06/11/2020)

The Income Tax Department has carried out search and seizure operations on 05.11.2020 in the case of a well-known self-styled evangelist of Thiruvalla in Kerala and his group of various trusts that enjoy exemption under the Income-tax Act, 1961 as charitable/religious trusts....

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Income Tax Department conducts searches in West Bengal

Release ID: 1670627 (06/11/2020)

The Income Tax Department has carried out searches on 05/11/2020 in the case of one prominent coal trader of West Bengal having premises in Raniganj, Asansol, Purulia and Kolkata. The searches were based on intelligence gathered, which indicated that large scale unaccounted cash was being generated and used for various purposes....

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ITAT Deletes section 14A disallowance made without following procedures

Standard Chartered Grindlays Bank-Tax Department Vs ACIT (ITAT Delhi)

The issue under consideration is whether CIT(A) is correct in disallowing managerial and administrative expenses for earning dividend income by treating this as tax free income?...

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ITAT condones delay of 2625 days in Appeal Filing

EIT Services India Pvt. Ltd. Vs ACIT (ITAT Bangalore)

Eit Services India Pvt. Ltd. Vs ACIT (ITAT Bangalore) According to the Assessee, it was on the basis of professional opinion, under the belief that the issues that were sought to be agitated before the CIT(A) against the order of assessment dated 30.12.2008 could be agitated before the AO in the proceedings pursuant to the […]...

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AO cannot ignore provisions of section 55(2)(b) in computation of indexed cost

Devendra Kumar Shroff Vs ITO (ITAT Kolkata)

Computation of indexed cost of acquisition by the AO, taking the cost of acquisition at the cost price of 15.04.1976 without considering the provisions of section 55(2) clause (b) and taking the base cost inflation index at 406 is bad in law and we direct that Rs. 8,30,000/- must be taken as the cost of acquisition instead of Rs.1,122/-.....

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Adjudication Order must be Speaking & should deal with facts: HC

Supreme Industries Ltd. Vs CBIC & Ors. (Bombay High Court)

The issue under consideration is whether the order passed by the custom officer against the self assessment done by petitioner without stating any specific reason is sustainable in law?...

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Criminal trial verdict does not conclude disciplinary proceedings

The State of Rajasthan & Ors. Vs Heem Singh (Supreme Court of India)

The State of Rajasthan & Ors. Vs Heem Singh (Supreme Court of India) In the present case, the respondent was acquitted of the charge of murder. The circumstances in which the trial led to an acquittal have been elucidated in detail above. The verdict of the criminal trial did not conclude the disciplinary enquiry. The […]...

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Bombay HC extends all interim orders till 22.12.2020

High Court on Its Own Motion Vs State of Maharashtra (Bombay High Court)

High Court on Its Own Motion Vs State of Maharashtra (Bombay High Court) 1. Although the situation in the State of Maharashtra because of the pandemic has improved over the last few days, access to the courts of law is yet not free. To ensure that persons suffering orders of dispossession, demolition, eviction, etc., passed […]...

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Action against companies defaulting in payment of Listing Fees: NSE

Ref No: NSE/CML/2020/53 (06/11/2020)

All listed companies are requested to take note that the following action shall be taken if a listed company fail to pay the outstanding ALF (including the listing fee for Financial Year 2020-21) on or before November 20, 2020,...

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GST: HC Set Aside Order of Provisional Attachment of Bank A/c & Directs to De-freeze

A. P. Steels Vs Additional Director General DGCI (Karanataka High Court)

The HC held that the impugned provisional attachment of the Petitioner's bank account was in vogue till 27.05.2020. The communication/order dated 28.05.2019 ceased to operate with the effect from 27.05.2020. Respondent Nos.1 and 2 were directed to de- freeze the Petitioners’ bank account....

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HC Quashed GST Penalty Order due to Contravention of Principles of Natural Justice 

Thoppil Agencies Vs Asst. CCT (Karnataka High Court)

In the instant case, the petition is filed for seeking quashing of the penalty order in Form GST OV 09 under Section 129 (3) of the Central Goods and Services Act, 2017. HC Quashed Penalty Order due to Contravention of Principles of Natural Justice ...

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Notification for Rate of Interest on GPF for Q3 of 2020-21

Notification No. F.No. 5(2)-B(PD)/2020 (27/10/2020)

It is hereby notified that the deposits made under the Special Deposit Scheme for Non-Government Provident, Superannuation and Gratuity Funds, announced in the Ministry of Finance (Department of Economic Affairs) Notification No.F.16(1)-PD/75 dated 30th June, 1975, shall with effect from 1st October, 2020 to 31st December, 2020 bear inter...

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Norms regarding holding of liquid assets in open ended debt schemes & stress testing of open ended debt schemes

Circular No. SEBI/HO/IMD/DF3/CIR/P/2020/229 (06/11/2020)

All open ended debt schemes (except Overnight Fund, Liquid Fund, Gilt Fund and Gilt Fund with 10 year constant duration) shall hold at least 10% of their net assets in liquid assets. For this purpose, ‘liquid assets’ shall include Cash, Government Securities, T-bills and Repo on Government Securities....

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Introduction of ‘Flexi Cap Fund’ as a new category under Equity Schemes

Circulars No. SEBI/HO/IMD/DF3/CIR/P/2020/228      (06/11/2020)

In order to give more flexibility to the mutual funds and taking into account the recommendations of Mutual Fund Advisory Committee (MFAC), a new category named Flexi Cap Fund under Equity Schemes will be available with the following scheme characteristics....

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Framework governing Clearing Corporations for BCP & DR, Cyber Security & outsourcing activities by LPCC

Circular No. SEBI/HO/MRD2/DCAP/CIR/P/227 (06/11/2020)

LPCC has been permitted to enter into outsourcing agreements with existing Clearing Corporations for the purpose of using their core and critical IT support infrastructure / activities for running the core activities (transaction process, clearing and settlement) of the LPCC and related operations....

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Investor Grievance Redressal Mechanism

Circular No. SEBI/HO/MIRSD/DOC/CIR/P/2020/226 (06/11/2020)

Securities and Exchange Board of India SEBI/HO/MIRSD/DOC/CIR/P/2020/226 November 06, 2020 To, The Managing Director/Executive Director, All Stock Exchanges Dear Madam/Sir, Subject: Investor Grievance Redressal Mechanism 1. In order to further strengthen the Investor Grievance Redressal Mechanism, based on feedback received from market par...

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CBIC notifies Rate of Exchange of Foreign Currencies wef 6.11.2020

Notification No. 105/2020-Customs (N.T.) (05/11/2020)

CBIC notifies Rate of Exchange of Foreign Currencies against India Rupees wef 6th November, 2020, vide Notification No. 105/2020-Customs (N.T.), Dated: 5th November, 2020. GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) (CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS) ***** Notification No. 105/2020-Customs (N.T.) New Delhi,...

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Revision of deceased claim sanction limit in National (Small) Savings Schemes where no nomination exists or no legal evidence is available

SB Order No. 36/2020 (06/11/2020)

SB Order No. 36/2020 e.F.No.113-02/2019-SB Government of India Ministry of Communications Department of Posts Dak Bhawan, Sansad Marg, New Delhi-110001 Date: 06.11.2020 To, All Head of Circles/Regions Subject: – Regarding revision of deceased claim sanction limit in National (Small) Savings Schemes where no nomination exists or no l...

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Filing of reply under GST in Form GST REG-24

The taxable person who has received a show cause notice in Form GST REG-23 is required to file a defence reply in Form GST REG-24. Such a defence reply in Form GST REG-24 is to be filed within a period of seven working days. The present article explains the receipt of notice by the taxable […]...

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Treatment of Interest on Fixed Deposit – ITAT remanded case Back to AO

Angul Sukinda Railway Ltd. Vs ITO (ITAT Cuttack)

Angul Sukinda Railway Ltd. Vs ITO (ITAT Cuttack) We find that during the course of assessment proceedings the assessee explained before the AO with regard to interest on mobilization advance is a capital receipt, therefore, it has been reduced from the capital work-in-progress and in case of interest earned on fixed deposit/flexi deposits...

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Advisory for Financial Sector Organizations regarding SaaS based solutions

Circular No. SEBI/HO/MIRSD2/DOR/CIR/P/2020/221 (03/11/2020)

Indian Computer Emergency Response Team (CERT-in) has issued an advisory for Financial Sector organizations. The advisory has been forwarded to SEBI for bringing the same to the notice of financial sector organization. The advisory is enclosed at Annexure A of this circular....

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Enhancement of Overseas Investment limits for Mutual Funds

Circular No. SEBI/HO/IMD/DF3/CIR/P/2020/225 (05/11/2020)

Mutual Funds can make overseas investments subject to a maximum of US $ 600 million per Mutual Fund, within the overall industry limit of US $ 7 billion. Mutual Funds can make investments in overseas Exchange Traded Fund (ETF(s)) subject to a maximum of US $ 200 million per Mutual Fund, within the overall industry limit of US $ 1 billion....

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Faceless asseseement under income tax

Extract from budget speech of Hon’ble union finance minister on 5th July 2019 “Para 124. The existing system of scrutiny assessments in the Income-tax Department involves a high level of personal interaction between the taxpayer and the Department, which leads to certain undesirable practices on the part of tax officials.  To elimina...

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Fundamental of reverse charge under GST

Meaning of reverse charge:  As per Section 2(98) of the CGST Act ‘reverse charge’ means the liability to pay tax by the recipient of supply of services  or goods instead of supplier of such services or goods under sub-section (3) or sub-section (4) or under sub-section (3) or sub-section (4) of section 5 of IGST […]...

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Submission of Income Tax Return & Procedure for Assessment

Return of income is a special type of form to be used by the assesse to furnish necessary information – name, address, PAN/GIR No., Bank Account, income under each head, total income, tax liability, etc. before the income tax authority. Different types of forms are prescribed in Rule 12 of the Income Tax Rules, 1962 […]...

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Article 246A : Power to levy tax with respect to GST – pertinent issues

Legislation is always enacted with some purposes, objects and reasons. A proposed Legislation is placed before Parliament with a statement of objects and reasons appended to it. The objects and reasons accompanying a bill, which subsequently gets converted into an Act, are to be taken into consideration in interpreting the provisions of t...

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Manual on Filing reply for GST proceedings initiated for Remanded Cases

How can I take action in proceedings for Remanded Cases and Appeal Effects initiated against me by the Tax Officer? To take action in proceedings for Remanded Cases and Appeal Effects, perform following steps: A. Navigate to View Additional Notices/Orders page to view Notices and Orders issued against you by Adjudicating or Assessing...

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Manual View Submitted or Saved Application for GST Refund

How can I view my submitted or saved application for refund on the GST Portal? 1. To view your submitted application, navigate to Services >Refunds >My Saved/Filed Applications option. 2. The Saved/Filed Application page is displayed. Note: You can download the ARN receipt by clicking on the ARN hyperlink to take the print out of...

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Manual View/ Download Additional GST Notices & Demand Orders

How can I view additional orders/notices issued by the tax officer? To view additional orders/notices issued by the tax officer, perform following steps: 1. Access the www.gst.gov.in URL. The GST Home page is displayed. 2. Login to the portal with valid credentials. 3. Dashboard page is displayed. Click Dashboard > Services > Use...

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Manual on Enrolling as a GST Practitioner

Registration as a GST Practitioner (GSTP) on the GST Portal? 1. Access the https://www.gst.gov.in/ URL. The GST Home page is displayed. 2. Click Services > Registration > New Registration option. Part A: 3. The New Registration page is displayed. Select the New Registration option. 4. In the I am a drop down list, select the GST P...

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How to Opt for Composition Levy (FORM GST CMP-02)

What are the steps involved in applying to Opt for the Composition Levy on the GST Portal? To opt for the Composition Levy on the GST Portal as an existing taxpayer, perform following steps: 1. Access the https://www.gst.gov.in/ URL. The GST Home page is displayed. Login to the GST Portal by entering your login credentials. […]...

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Manual Online Procedure to Opt for Composition Levy & File CMP 02

How to file GST form CMP 02 online on the GST Portal? The steps to opt for composition scheme under GST are as follows: To opt for composition levy access the URL https://www.gst.gov.in/. The GST Home page will be displayed. In case of New Registration: 2. Log into the GST Portal by entering your login Credentials. […]...

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Form GSTR-4 – Quarterly Return (Till FY 2018-19)- Filing Manual

How can I create and file details in Form GSTR-4 – Quarterly Return (Till FY 2018-19)? To create and file details in Form GSTR-4 – Quarterly Return (Till FY 2018-19), perform following steps: Note: Quarterly Form GSTR-4 has been discontinued w.e.f. 1st April, 2019. This manual can be used for quarterly Form GSTR-4 to be file...

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How to login to GST Portal with username & password?

How can I login to the GST Portal with username and password? To login to the GST Portal with username and password, you need to perform the following steps:  1. Access the URL https://www.gst.gov.in/. The GST Home page is displayed. 2. Click the Login link given in top right-hand corner of the GST Home page. […]...

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Property sold during pendency of GST proceedings is Void

Saraspathy Sundaraj Vs Assistant Commissioner (Madras High Court)

High court held that since the defaulter had transferred the property in favour of his brother's wife, by appointing his own brother as the Power Agent to act on his behalf and such a sale has happened within six months from the date of which the demand of arrears of tax was made, it can be said there are no bona fides in such a transfer....

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Comprehensive analysis of Section 44AD & related aspects

Comprehensive analysis of Section 44AD with other related aspects The provisions of Section 44AD were introduced in the Chapter of Profits & Gains from Business or profession to reduce the compliance burden of resident small Taxpayers. Undoubtedly throughout, the concept related to “Presumptive Taxation Schemes’’ has been very w...

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Analysis of Form 3CA, Form 3CB and Form 3CD – Part 1

Article is first part of series of articles in which Author will Analyse Form 3CA, Form 3CB and Form 3CD related to Tax Audit under Income Tax Act, 1961- 1. Form  3CA – Audit Report under Section 44AB in a case where the accounts of the business or profession of a person have been audited […]...

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Delhi High Court: Upheld the power to conduct Service Tax Audit post GST regime

Section 174(2)(e) of the Central Goods and Services Tax Act, 2017 (CGST Act), specifically empowers the authorities to institute any investigation, inquiry, verification, assessment proceedings, adjudication, etc. including service tax audit under Rule 5A of the Service Tax Rules, 1994 (Service Tax Rules), as said Rule framed under the re...

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Misclassification & voluntary registration perse will not create liability

N J Devani Builders Pvt. Ltd Vs Union Of India (Gujarat High Court)

N J Devani Builders Pvt. Ltd Vs Union Of India (Gujarat High Court) Petitioner had voluntarily registered under the head of ‘commercial /industrial construction services’, the petitioner is liable to pay service tax, is not tenable as the petitioner cannot be held to be liable to pay service tax before 01.06.2007, where, it is...

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No detention of Goods in Transit for alleged Wrong Classification

Asharaf Ali K. H. Vs Assistant State Tax Officer (Kerala High Court)

High Court held that the allegation of mis-classification of goods cannot warrant detention of the goods during transit. If the officer feels that there have been misclassification of the goods, then a report to be prepared and sent to the Assessing Officer, who can consider the said report and objections at the time of finalising the as...

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November 2020