John Foundation, vs. The Deputy Commissioner of Income Tax,

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WP/23434/2025HC TelanganaHBHC01046323202507 August 2025Author: P.SAM KOSHY,SUDDALA CHALAPATHI RAO4 pages
AI SummaryPartly Allowed

What did the High Court hold?

The High Court allowed IA No.1 of 2026, the recall petition, finding a strong case for revival of the writ petitions based on the Supreme Court's decision dated 10.04.2026. The Court noted that the Supreme Court had remitted all matters to the respective High Courts, permitting petitioners to question the constitutional validity of Section 147-A of the Income Tax Act. Consequently, IA No.2 of 2026 (Implead Petition) and IA No.3 of 2026 (Amendment Petition) were also allowed, recognizing the proposed respondent as a necessary and proper party and permitting the necessary amendments. The Court directed the registry to carry out amendments within ten days. The writ petitions were listed before the appropriate bench. Crucially, considering the interim protection granted by the Supreme Court in similar matters, the High Court granted an interim stay on the proceedings until the next date of hearing.

What were the facts?

The Income Tax Department (respondent) filed an application (IA No.1 of 2026) to recall and restore five writ petitions (W.P.Nos. 23376, 23388, 23434, 23436, 24348 of 2025) previously disposed of by the High Court. The restoration was sought based on a Supreme Court decision dated 10.04.2026 concerning faceless assessment proceedings. This Supreme Court decision remitted matters to respective High Courts, allowing petitioners to question the constitutional validity of Section 147-A of the Income Tax Act. The High Court had previously granted liberty to parties to seek revival of these petitions pending the outcome of Supreme Court matters. Additionally, applications were filed to implead a party (IA No.2 of 2026) and for amendment of petitions (IA No.3 of 2026), both linked to the Supreme Court's directive.

What were the issues?

1. Whether the writ petitions, previously disposed of, should be revived and restored for further adjudication, considering the Supreme Court's decision dated 10.04.2026 in the faceless assessment batch matters. (Question of procedure and law) 2. Whether the proposed respondent is a necessary and proper party to the writ proceedings, given the remittance of matters by the Supreme Court to question the constitutional validity of Section 147-A of the Income Tax Act, 1961. (Question of procedure and law) 3. Whether amendments to the writ petitions are permissible to incorporate challenges to the constitutional validity of Section 147-A of the Income Tax Act, in light of the Supreme Court's directive. (Question of procedure and law) Assessee's Contentions: Not recorded. Revenue's Contentions: The Revenue contended that the Supreme Court's decision dated 10.04.2026, which remitted matters to the High Courts to allow challenges to the constitutional validity of Section 147-A of the Income Tax Act, necessitates the revival of these writ petitions. They also sought to implead a party and amend the petitions accordingly.

Which sections of the Income-tax Act were involved?

Section 147-A

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
HIGH COURT FOR THE STATE OF TELANGANA MAIN CASE No: W.P.Nos. 23376, 23388, 23434, 23436, 24348 of 2025 PROCEEDINGS SHEET Sl. No. Date

OFFICE NOTE

15.10.

2026 HACJ (PSK,J) & SCR,J

Counsel for the petitioners: Mr. A V Raghu Ram.

Counsel for the respondents : Mr.N.Praveen Reddy, learned Senior Standing Counsel for the Income Tax Department.

I.A.No.1 of 2026 (Recall Petition) IN W.P.Nos.23376, 23388, 23434, 23436, 24348 of 2025

IA No.1 of 2026 is filed by the respondent/Income Tax Department seeking for the restoration of these Writ Petitions in terms of recent decision of the Hon’ble Supreme Court in the faceless batch which was decided on 10.04.2026, whereby the matters were all remitted to the respective High Courts, permitting the petitioners therein to question the Constitutional validity of the provision under Section 147-A of Income Tax Act.

This Court while disposing of the instant writ petition at the first instant, had granted the liberty to the either of the parties to move proper application for revival, subject to the outcome of the matters pending before the Hon’ble Supreme Court pertaining to the Transferred to i/o folder, before corrections, if any.

2 faceless proceedings.

Given the fact that the Hon’ble Supreme Court has itself remitted all those matters pending before the Hon’ble Supreme Court to the respective High Courts. We are of the considered opinion that a strong case for revival of the present writ petition has also been made out. Accordingly, IA No.1 of 2026 stands allowed. I.A.No.2 of 2026 (Implead Petition) IN W.P.Nos.23376, 23388, 23434, 23436, 24348 of 2025

This application has been filed seeking to implead the proposed respondent as a party respondent in the above writ petitions.

On due consideration of the fact that the instant implead petition has been filed pursuant to the recent decision of the Hon’ble Supreme Court in the faceless batch, decided on 10.04.2026, whereby the matters were remitted to the respective High Courts, permitting the petitioners therein to question the constitutional validity of the provision under Section 147-A of the Income Tax Act, 1961, this Court is of the view that the proposed respondent is a necessary

3 and proper party to the proceedings.

Accordingly, this application is allowed.

The Registry is directed to carry out the necessary amendments within a period of ten days from today. I.A.No.3 of 2026 (Amendment Petition) IN W.P.Nos.23376, 23388, 23434, 23436, 24348 of 2025

Considering the fact that the instant amendment petitions has been filed in terms of recent decision of the Hon’ble Supreme Court in the faceless batch which was decided on 10.04.2026, whereby the matters were all remitted to the respective High Courts, permitting the petitioners therein to question the Constitutional validity of the provision under Section 147-A of Income Tax Act.

Accordingly, these applications are allowed.

Let necessary amendments be carried out by the petitioners within a period of 10 days from today.

W.P.Nos.23376, 23388, 23434, 23436, 24348 of 2025

List these cases before appropriate Bench

4 having roster.

Meanwhile, Considering the fact that the Hon'ble Supreme Court, by its order dated 10.04.2026, granted interim protection in the batch matters pertaining to the faceless assessment scheme, we are also inclined to grant similar interim protection in the present batch cases.

Accordingly, there shall be an interim stay, as prayed for, until the next date of hearing.

____________ HACJ (PSK,J) _______ SCR,J aqs

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