2024 (7) TMI 1518 - HC - Income Tax

Income Tax Department hiring the building on rent/lease for its office premises - right to the Income Tax Department to terminate the lease - Building Hiring Committee which is under the Chairmanship of the Additional Commissioner of Income Tax along with the other members informed the petitioner that he had not been found to be qualified for opening of financial bid - Application praying for setting aside the notice whereby the petitioner was declared not qualified on the evaluation of technical bid submitted by the bidders including the petitioner - Petitioner is primarily aggrieved by the action of the respondents-Income Tax Department that having taken the premises in question on rent and having run its office for a period of more than 24 years, the respondents chose to vacate the premises of the petitioner without assigning any reasons for not continuing thereof - HELD THAT - As not in dispute that the last lease agreement entered into between the parties on 1.7.2023, gave right to the Income Tax Department to terminate the lease at any time giving to the lessor three month s notice in writing of its intention to do so. The said lease agreement also came to an end on 31.3.2024. The petitioner is not alleging violation of any of the terms of the lease. Further the notice inviting proposals as seen from Annexure P/6 was published on 16.02.2024. The petitioner also had bid under Annexure P/6, but was disqualified. After having thus bid and failed, the petitioner cannot turn around and challenge vacation of his premises. Thus, it transpires that bids submitted by the bidders including the petitioner was evaluated by the Building Hiring Committee of the Income Tax Department under the Chairmanship of the Additional Commissioner of Income Tax, Range-1, Patna and of which the Income Tax Officer (HQ), Patna, the Income Tax Officer, Ara, Ward 1 (4), Ara and the Income Tax Officer (Technical) I.T. Building, Patna were members. In the opinion of this Court, the suitability etc. of the premises of the bidders having been evaluated not only on the basis of technical bid submitted but also by visit of the members of the Building Hiring Committee to the premises in question on 16.4.2024, as is borne out from paragraph no.14 read with Annexure-P/7 of the writ application, the Court finds no merit in the contention raised by the petitioner. Writ application is dismissed.

Summary

Issues:
1. Setting aside a notice issued by the Income Tax Department declaring the petitioner not qualified for a bid evaluation.
2. Allegations of the Income Tax Department vacating premises without assigning reasons.
3. Disqualification of the petitioner's bid for office premises lease.
4. Evaluation process by the Building Hiring Committee and the petitioner's challenge.

Analysis:
The petitioner sought to set aside a notice issued by the Income Tax Department, declaring them unqualified for a bid evaluation concerning the lease of office premises. The petitioner's case revolved around the history of the property being rented to the Income Tax Department, with lease agreements dating back to 1999. The petitioner contended that the Department vacated the premises without providing reasons, despite a lease agreement in effect until March 31, 2024, allowing termination with a three-month notice. The petitioner argued that the Department's decision to disqualify their bid lacked justification, as no reasons were provided in the notice dated April 19, 2024.

The court noted that the Building Hiring Committee, chaired by the Additional Commissioner of Income Tax, evaluated bids submitted by various parties, including the petitioner. The Committee's evaluation included a visit to the premises in question. Despite the petitioner's claims, the court found no merit in the petitioner's contentions. The court emphasized that after participating in the bid process and facing disqualification, the petitioner could not contest the vacation of their premises. Additionally, the court highlighted that the petitioner's bid was assessed not only based on technical aspects but also through physical inspection by the Committee members.

In conclusion, the court dismissed the writ application, upholding the decision of the Building Hiring Committee to disqualify the petitioner's bid for the lease of office premises. The judgment emphasized the thorough evaluation process undertaken by the Committee, including on-site inspections, and rejected the petitioner's arguments regarding the Department's actions and the bid disqualification.