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TMI Blog2024 (11) TMI 1268X X X X Extracts X X X X X X X X Extracts X X X X ..... the ground that the petitioners had submitted documents, which were not in conformity with Clause 13(h) of the NIT. 3. The petitioners' case is that they had participated in e-Tender Notice dated 11.01.2024 (hereinafter referred to as the 'NIT'), for empanelment of manufacturers and suppliers for supply of handloom and handloom accessories under the various schemes of Government of India and Government of Assam, implemented by the Directorate of Handloom and Textiles, Assam. 4. The petitioners' counsel submits that in terms of Clause 3(b) of the NIT, relating to the eligibility criteria of the bidders, bidders were to have not less than Rs. 50 Lakhs as the average annual financial turnover during the last three years, i.e., 2020-2021, 2021-2022 & 2022-2023 and they were also required to have the experience of supply of handloom and handloom accessories for an aggregated value of a minimum of Rs. 10 Lakh during the last three financial years in terms of Clause 3(c). He further submits that in terms of Clause 3(e) of the NIT, Micro and Small Enterprises (MSEs) are exempt from prior turnover and experience in all public procurements, subject to meeting the quality and technical spe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mits that the petitioners' technical bid had been rejected due to the petitioners not submitting their income tax returns for the year 2022-23 in terms of Clause 13(h). He submits that Clause 13(h) does not come within the ambit of Clause 3(b). He further submits that the petitioners had submitted the Income Tax Returns only for the year 2020 - 2021 and 2021 - 2022, though Income Tax Return had to be submitted for 2022 - 2023 also. He accordingly submits that there is no reason for allowing the writ petition, as there is no infirmity with the rejection of the petitioners' technical bid. 9. Mr. D.K. Nath, learned counsel for the private respondents No.4-13 submits that all the private respondents had submitted their Income Tax Returns in terms of Clause 13(h) of the NIT. 10. I have heard the learned counsels for the parties. 11. Clause 13(h) of the NIT provides that the Income Tax Return and annual audited report for the last 3 financial years should be submitted. Clause 13(h) is a part of the "Schedule of Requirement" pertaining to Clause 13 Technical Bid (Part-I). Clause 13 provides that the "following self-attested documents in hard copy and in online must be submitted in tech ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the NIT and as such, whether Clause 3(e) would exempt the petitioners from submitting the Income Tax Returns for 3 years, as required as per Clause 13(h) of the NIT. The further question is whether the word "Turnover" and "Income Tax Return" are different. 14. On considering the above Clauses in the NIT, this Court finds that Annual Turnover refers to the total revenue generated from the sale of goods or services during a financial year before deducting any expenses. It is a measure of business activity and operational performance. It is focused solely on the sales and revenue generated in the normal course of business. It does not factor in expenses, taxes, or other financial liabilities. Annual Turnover may be reported using different accounting methods (cash or accrual basis) based on the company's accounting policies, but it must be consistent with generally accepted accounting principles. 15. An Income Tax Return is a formal document filed with the tax authorities that reports income, deductions, and taxes owed for a given financial year. It encompasses various sources of income, including but not limited to turnover. An Income Tax Return includes comprehensive financ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the year 1980, while discussing "sales", stated as follows: "Total turnover, that is, the aggregate amount for which sales are effected by the company, giving the amount of sales in respect of each class of goods dealt with by the company and indicating the quantities of such sales for each class separately. Note (i) The term 'turnover' would mean the total sales after deducting therefrom goods returned, price adjustments, trade discount and cancellation of bills for the period of audit, if any. Adjustments which do not relate to turnover should not be made e.g. writing off bad debts, royalty etc. Where excise duty is included in turnover, the corresponding amount should be distinctly shown as a debit item in the profit and loss account." (emphasis added) The aforestated meaning given by the ICAI clearly denotes that in normal accounting parlance the word "turnover" would mean "total sales" as explained hereinabove. The said sales would definitely not include the scrap material which is either to be deducted from the cost of raw material or is to be shown separately under a different head. We do not see any reason for not accepting the meaning of the term "turnover" given ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... redundant or superfluous. They must be given meaning and their necessary significance. 21. In the case of Afcons Infrastructure Ltd. Vs. Nagpur Metro Rail Corporation Ltd. & Another, reported in (2016) 16 SCC 818, the Supreme Court has held as follows- "The owner or the employer of a project, having authored the tender documents, is the best person to understand and appreciate its requirements and interpret its documents." In the case of Silppi Constructions Contractors vs. Union of India & Another, reported in (2020) 1 SCC 489, the Supreme Court has held as follows:- "The essence of the law laid down in regard to the scope of judicial review. in respect of government contracts is the exercise of restraint and caution; the need for overwhelming public interest to justify judicial intervention in matters of contract involving the state instrumentalities; the courts should give way to the opinion of the experts unless the decision is totally arbitrary or unreasonable; the court does not sit like a court of appeal over the appropriate authority; the court must realise that the authority floating the tender is the best judge of its requirements and, therefore, the court's int ..... X X X X Extracts X X X X X X X X Extracts X X X X
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