JUDGMENT

Prathiba M. Singh, J.

Background

1. Both the present petitions raise interesting legal issues relating to the interplay between the Income Tax Act, 1961 (hereinafter `IT Act') and the Micro, Small and Medium Enterprises Development Act, 2006 (hereinafter `MSMED Act') relating to fee payable to CA Firms, for Special Audits directed under Section 142(2A) of the IT Act.

2. The Petitioner i.e., the Principal Commissioner of Income Tax, Central-1, has filed the present writ petitions challenging the directions for reference to arbitration passed by the Respondent No. 1 i.e., the Micro & Small Enterprise Facilitation Council (hereinafter `MSEFC') - an authority established under Section 20 of the MSMED Act. Respondent No. 2 i.e., M/s SBG & Co. is a partnership firm of Chartered Accountants (hereinafter `CA Firm') of which Mr. S.B. Gupta is a Partner. The said CA Firm is also registered as a `Micro Enterprise' under the provisions of the MSMED Act.

3. The CA Firm, being on the panel of the Income Tax Department (hereinafter `IT Department'), was nominated as a Special Auditor by the IT Department in four cases for carrying out Special Audit in terms of Section 142(2A) of the IT