Tender & u/s44ad

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Prabhjot (Querist)
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08 April 2017 Dear Sirs,

I am a civil Contractor & file my return under u/s 44AD @ 9%.

Last month I Quoted for a IOCL tender in which they asked for :-

1. Details of Annual Turnover. Audited Accounts/Balance Sheets for Financial Years 2013-14, 2014-15 & 2015-16.

2. Audited Balance Sheet of the relevant Details of Annual Turnover. Audited Accounts/Balance Sheets for Financial Years 2013-14, 2014-15 & 2015-16 .

3. Scanned copy of CA certified annual turnover of previous three financial years i.e. 2013-14. 2014-15 & 2015-16. The turn over as per audited accounts, submitted by the tenderer shall be the basis for further evaluation, wherever required. If the party is submitting the Turn-over documents only for one year or two years than average turn-over shall be calculated by dividing the sum by 3.

To this I submitted my ITR, Computation of tax in which it was mentioned Gross Receipts 14.20 Lacs & Net Profit @ 9% u/s44AD of IT Act. The Computation was Stamped by by CA & written on it was "Certified True Copy" & signed below.

Then again IOCL raised objection to submit CA Certified copy of Balance Sheets, to which my CA made a Balance sheet (Stamped by by CA & written on it was "Certified True Copy" & signed below.) but I did not attach any Trading, Profit & Loss account as my CA said same is not prepared under u/s 44AD.

Now my tender have been rejected due to Financial Credentials documents.

Is it a valid reason by IOCl to reject my tender as I have not attached Trading, Profit & Loss account ?, Was it mandatory to attach these documents with Balance Sheet as IOCL only used word to upload Unconditional CA certified balance sheet of 2014 15 Balance sheet of 2015 16 ?

please help me out, is IOCL correct on their part ? or should i fight & knock door of court for justice.

Plz help.

7814065658

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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09 April 2017 You have not complied with the tender condition of submitting trading and P&l account, which is mainly required for evaluation. See the condition of tender clause 3 above, the turnover as per audited accounts submitted by the tenderer shall be the basis for further evaluation.
You have not submitted documents required for evaluation of tender hence rejection of your tender is in order.
Declaring 9% profit for income tax is legally allowed, that will not affect disclosure of true profit to your bankers and other person connected to your business.

Prabhjot

Prabhjot (Querist)
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10 April 2017 Is it mandatory to attach P&L a/c & Trading a/c as IOCL used only word to submit Balance Sheet. Is there any at of IT which says Balance Sheet should accompany the P&L a/c & Trading a/c.

This tender is very important for me & only due to only one paper i hve got rejected.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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10 April 2017 See the detail asked in para No 1 they asked for annual turnover details in audited accounts/balance sheet. You have submitted only balance sheet which will not contain turnover details. They have asked for audited accounts Which include P&l AC, you have not finished it they have rightly rejected your tender for want of documents for turnover.

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