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2018 (11) TMI 1954 - RAJASTHAN HIGH COURTRegistration of petitioner firm as transporter and handler of the agricultural produce - denying the registration of the firm on account of not getting the balance-sheets audited by Income Tax Department for last three years - Non-considering the bid of the petitioner for the purpose of empanelment - Counsel submitted that the requirement of having the turnover of 1.5 Crore in last 3 financial years is fulfilled by the petitioner-firm and only on account of audit not being carried out, the respondents have acted arbitrarily in rejecting the empanelment of the petitioner-firm. HELD THAT:- 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 rupees in any previous year, there is no requirement of getting the accounts audited. This Court further finds that the requirement as per Condition No. 5 was to consider the turnover for last three years of Rs. 1.50 Crore and if the petitioner-firm had the turnover in last three years of 1.50 Crore, the same could not be related to the condition of audited balance-sheets. The plea of the respondents that even if the turnover is less than One Crore but it exceeds to 1.50 Crore in the last three years, the same is required to be audited, this Court finds no substance in the arguments raised by counsel for the respondents, as it runs contrary to the requirement of Section 44 (A)(B) of the Income Tax Act, 1961. This Court finds that if the procuring entity prescribes a condition to be fulfilled by the bidder, such condition had to be in consonance with the requirement of law. The Income Tax Act, 1961 has prescribed the minimum turnover for getting the accounts audited, the procuring authority cannot interprete and put such a condition to insist upon getting the accounts audited even if some assessee/businessmen who has a turnover of less than one crore in a particular year. This Court finds little substance in the submission of the learned counsel for the respondents that the action taken by the respondents is perfectly legal and justified. The respondents while considering the bid submitted by different eligible bidders was required to consider the condition which was 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.
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