PRIMARY AGRICULTURAL COOPRATIVEE CREDIT SOCIETY LIMITED vs. The Income Tax Officer

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WP/32052/2024HC TelanganaHBHC01062043202402 May 2025Author: P.SAM KOSHY,NARSING RAO NANDIKONDA4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court allowed the interlocutory application (I.A. No. 1 of 2026) filed by the Income Tax Department. The Court held that a strong case had been made out for recalling the order dated 02.05.2025 passed in Writ Petition No. 32052 of 2024. This decision was based on the Supreme Court's recent order dated 10.04.2026, which remitted faceless proceedings matters to the respective High Courts and allowed petitioners to question the constitutional validity of Section 147-A of the Income Tax Act, 1961. The High Court noted that it had previously granted liberty to the parties to move for revival, subject to the outcome of the Supreme Court matters. Consequently, the earlier order of 02.05.2025 was recalled. The writ petition is now to be listed for fresh adjudication.

What were the facts?

This case concerns an interlocutory application (I.A. No. 1 of 2026) filed by the Income Tax Department (respondent/petitioner) in Writ Petition No. 32052 of 2024. The original writ petition was filed by Jangrai Primary Agricultural Cooperative Credit Society Limited (respondent/writ petitioner) for the assessment year 2018-19. The Income Tax Department sought to recall an order dated 02.05.2025 passed in the writ petition. The basis for this application was a recent decision of the Hon'ble Supreme Court on 10.04.2026 concerning faceless proceedings. The High Court had previously disposed of the writ petition with liberty to the parties to move for revival, pending the Supreme Court's decision. The Supreme Court's order remitted matters to respective High Courts, allowing petitioners to question the constitutional validity of Section 147-A of the Income Tax Act, 1961.

What were the issues?

1. Whether the order dated 02.05.2025 passed in Writ Petition No. 32052 of 2024 should be recalled for fresh adjudication in light of the Supreme Court's order dated 10.04.2026? (Question of law and procedure) Assessee (Jangrai Primary Agricultural Cooperative Credit Society Limited) arguments: The assessee did not present arguments in this interlocutory application. The application was filed by the Income Tax Department. Revenue (Income Tax Department) arguments: The Revenue argued that the Supreme Court's decision on faceless proceedings, which remitted matters to High Courts and permitted challenges to the constitutional validity of Section 147-A of the Income Tax Act, 1961, necessitates recalling the earlier order. They relied on the Supreme Court's order in Income Tax Officer, Ward 2(1), Chandigarh & Ors. v. Tej Partap Singh.

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
13447 | IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD TUESDAY, THE ELEVENTH DAY OF AUGUST TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRIJUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA I.A.NO.1 0F 2026 IN WRIT PETITION NO: 32052 OF 2024 Between: AND PRIMARY AGRICULTURAL COOPRATIVEE CREDIT SOCIETY JANGARAI, Rep. by the Secretary VENNELA BALAKISHTAIAH' S/o MALLAIAH, Aged about 59 years, Occupation. Business, Fi/o. SHANKARAMPET R, MEDAK 502255, Telangana, lndia. Assessment Year. 201 8-1 9. 1. The lncome Tax Officer, Ward 1, Siddipet lncome Tax Office, 8-1-22' 1st Floor, Subhash Road, Siddipet 502103, Telangana. 2. The Principal Chief Commission6r of lncome Tax, Telangana and A.P, Hyderabad, lT Towers, AC Guards, Masab Tank, Hyderabad. 3. The Central Board of Direct Taxes, Represented by its Chairman Department of Revenue, Ministry of Finance, Government of lndia, Secretariat Buildings, New Delhi. 4. The National Faceless Assessment Center, income Tax Department, New Delhi. 5. The Union of lndia, Represented by its Secretary to the Government, Department of Revenue, Ministry of Finance, New Delhi. .....PETITIONERS/RESPONDENTS LIMITED, VENNELA JANGARAI .....RESPONDENT/WRIT PETITIONER Petition Under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to revive/recall the order dated 02.05.2025 passed in W.P. No. 3205212024 for fresh adjudication in light of the Order dated 10.04.2026 passed by the Hon'ble Supreme Court in lncome Tax Officer, Ward 2(1), Chandigarh & Ors. v. Tej Partap Singh. Counsel for the Petitioner : SRI K.SUDHAKAR REDOY, LEARNEO SENIOR STANDING COUNSEL FOR THE INCOME TAX DEPARTMENT Counsel for the Respondents : SRI THANNERU CHAITANYA KUMAR

The Court made the following ORDER l.A.No.1 ot 2026 is filed by the respondenUlncome Tax Department seeking for the recalling the order, dated 02.05.2025, in WP.No.32052 ot 2024 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 ol lncome Tax Act, 1961. 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 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 recalling the order dated 02.05.2025 has also been made out. Accordingly, l.A.No.1 ot 2026 stands allowed and the earlier order stands recalled. P.PONNA KRISHNA ASSISTANT REGISTRAR ////

1.

The lncome Tax Officer, Ward 1, Siddipet lncome Tax Office, B-1-22, 1st Floor, Subhash Road, Siddipet 502103, Telangana.

2.

The Principal Chief Commissioner of lncome Tax, Telangana and A.p, Hyderabad, lT Towers, AC Guards, Masab Tank, Hyderabad.

3.

The chairman Department of Revenue, centrar Board of Direct raxes, IVIinistry of Finance, Government of rndia, Secretariat Buirdings, New Derhi. \ _-- ,\ s\cfloN oFFrcER To SA BSR

4.

The National Faceless Assessment Center, income Tax Department, New Delhi.

5.

The Secretary to the Government, Union of lndia, Department of Revenue, Ministry of Finance, New Delhi.

6.

The Section Officer, Writ DB Section, High Court for the State of Telangana at Hyderabad.

7.

The Section Officer, Writ Posting Section, High Court for the State of Telangana at Hyderabad. B. One CC to SRI THANNERU CHAITANYA KUMAR, Advocate [OPUC]

9.

One CC to SRI K.SUDHAKAR REDDY, LEARNED SENIOR STANDING COUNSEL FOR THE INCOME TAX DEPARTMENT [OPUC] 10.One CC to SRI N.BHUJANGA RAO, DEPUTY SOLICITOR GENERAL OF rNDrA (OPUC) '1 1.Two CD Copies YV

HIGH COURT DATED: 1110812026 List on 27-8-2026 along with batch ORDER |.A.NO.1 0F 2026 IN WP.No.32052 ot 2024 ALLOWING THE I.A. 0I sEP 2026 1H o t DE a E ST4TA olo \z Prb ct'?'-. X."

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