TaxTMI 
TaxTMI 
2018 (11) TMI 1954
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....oduce as per the terms of the advertisement dt. 6th October, 2018, published in the newspaper. The petitioner has further challenged the action of the respondents to be illegal while denying the registration of the firm on account of not getting the balance-sheets audited by Income Tax Department for last three years. The petitioner in alternative has prayed that condition No. 5 of the advertisement may be declared arbitrary and may be quashed. This Court had issued notices to the respondents on 20^th November, 2018 and further asked counsel for the petitioner to serve copy to the panel lawyer-Mr. Bhuvnesh Sharma. Mr. Bhuvnesh Sharma learned counsel for the respondents has appeared and submitted that reply of the writ petition has bee....
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....s. The petitioner-firm also annexed the balance-sheets of three preceding years. The balance-sheets filed by the petitioner revealed turnover for Financial Year 2015-16 of Rs. 51,22,100/- for Financial Year 2016-17 of Rs. 53,19,950/- and turnover for the Financial Year 2017-18 of Rs. 54,35,320/- and the total turnover of the petitioner-firm came to more than Rs. 1.5 Crores for last three years. Petitioner has pleaded that the respondents published an order dt. 14th November, 2018 (Annex.7) whereby they prepared a panel of 7 persons/firms and as such the bid submitted by the petitioner-firm was rejected as the petitioner-firm did not find its name in the list of eligible persons. Petitioner has pleaded that petitioner-firm made enquiri....
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....n 44AB provides that every person carrying on business shall, if his total sales, turnover or gross receipts, as the case may be, in business exceeds one crore rupees in any previous year is required to get his accounts of such previous years audited. The relevant clause of Section 44AB is reproduced hereunder:- "44AB:- Every person,- (a) carrying on business shall, if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds one crore rupees in any previous year; or (b) carrying on profession shall, if his gross receipts in profession exceed [fifty] lakh rupees in any previous year; or (c) carrying on the business shall, if the profits and gains from the business are ....
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....such previous year:] Provided [further] that this section shall not apply to the person, who derives income of the nature referred to in section 44B or section 44BBA, on and from the 1^st day of April, 1985 or, as the case may be, the date on which the relevant section came into force, whichever is later: Provided [also] that in a case where such person is required by or under any other law to get his accounts audited, it shall be sufficient compliance with the provisions of this section if such person gets the accounts of such business or profession audited under such law before the specified date and furnishes by that date the report of the audit as required under such other law and a further report by an accountant in t....
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.... 11 of the reply wherein it has been asserted that petitioner failed to produce the audited balance-sheets and therefore his application could not be processed. Counsel further submitted that once condition of the audited balance-sheets for last three preceding years was prescribed, every applicant or the bidder was to specify the said condition and the condition cannot be termed as arbitrary. I have heard the submissions made by learned counsel for the parties and perused the material available on record. This Court finds that the requirement of audit of accounts is to be governed by the provisions contained in Section 44AB of the Income Tax Act, 1961 and if the turnover/sale/gross receipts in business does not exceed one crore ru....
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.... prescribed in the tender and also to fulfill the requirement of compliance of relevant law as well. This Court finds that non inclusion of name of the petitioner-firm on account of not having the audited balance-sheets is not justified and respondents have committed illegality in rejecting the bid of the petitioner-firm. Accordingly, the present writ petition succeeds and is hereby allowed. The respondents are directed to consider the bid of the petitioner for the purpose of empanelment and it should not be rejected on the ground of not having audited balance-sheets of last three years. The compliance of the order may be made within a period of fifteen days from the date of receipt of certified copy of this order. Accordingly, the....