PRIMARY AGRICULTURAL COOPERATIVE CREDIT SOCIETY LIMITED vs. The income tax officer ward 1

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WP/31879/2024HC TelanganaHBHC01061605202402 May 2025Author: P.SAM KOSHY,NARSING RAO NANDIKONDA4 pages
AI SummaryPartly Allowed

What did the High Court hold?

The High Court allowed IA No. 1 of 2026, thereby recalling its earlier order dated 02.05.2025 passed in WP No. 31879 of 2024. The Court reasoned that the Supreme Court, in its decision dated 10.04.2026 concerning faceless proceedings, had remitted all such pending matters to the respective High Courts for fresh adjudication. This directive from the apex court created a strong case for recalling the previous order. The High Court noted that it had previously granted liberty to the parties to move for revival of the writ petition subject to the outcome of the Supreme Court matters. Given the Supreme Court's decision to remit the cases, the Court found it appropriate to recall its earlier order to permit fresh adjudication as per the Supreme Court's mandate. The specific issue of constitutional validity of Section 147-A of the Income Tax Act, 1961, which was likely the subject of the original writ petition, would now be open for fresh adjudication.

What were the facts?

This case involves an interlocutory application (IA No. 1 of 2026) filed by the Income Tax Department (Petitioner) seeking to recall an order dated 02.05.2025 passed in Writ Petition No. 31879 of 2024. The writ petition was filed by the Primary Agricultural Cooperative Credit Society Limited, Nandikandi (Respondent) for the assessment year 2015-16. The Department's application is based on a recent decision of the Supreme Court dated 10.04.2026 in a batch of matters concerning faceless proceedings. The High Court had previously disposed of the writ petition with liberty to the parties to move for revival subject to the outcome of the Supreme Court matters. The Supreme Court's decision remitted all such matters to the respective High Courts for fresh adjudication.

What were the issues?

1. Whether the order dated 02.05.2025 in WP No. 31879 of 2024 should be recalled for fresh adjudication in light of the Supreme Court's decision in the faceless batch matters. Assessee (Income Tax Department) Contention: The Department argued that the Supreme Court's order dated 10.04.2026, which remitted matters concerning faceless proceedings to the respective High Courts for fresh adjudication, necessitates the recall of the earlier order passed by this Court. They relied on the Supreme Court's decision in Income Tax Officer, Ward 2(1), Chandigarh & Ors. v. Tej Partap Singh and connected batch matters. Revenue (Primary Agricultural Cooperative Credit Society Limited) Contention: The Respondent (assessee in the original writ petition) did not file any specific arguments in the provided text, but their participation as the respondent in the IA suggests they are likely not opposing the recall, given the Supreme Court's directive.

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
13471 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) THURSDAY, THE THIRTEENTH DAY OF AUGUST TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE P,SAM KOSHY AND THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA l.A. NO: 1OF 2026 IN WRIT PETITION NO: 31879 OF 2024 Between: 1. The income tax officer ward 1, Sangareddy lncome Tax Office, Veerabhadra Nagar, New Bus Stand, Veerabhadra Nagar, Sangareddy, Telangana-502001 TelanganaState. 2. The Principal Chief Commissioner of lncome Tax-, Telangana and A.P, Hyderabad, lT Towers, AC Guards, Masab Tank, Hyderabad -500 028, Telangana. 3. The National Faceless Assessment Center, lncome Tax Department, New Delhi. 4. The Central Board of Direct Taxes., Represented by its Chairman, Department of Revenue, Ministry of Finance, Government of lndia, Secretariat Buildings, New Delhi - 1 10 001 . 5. The Union of lndia, Represented by its Secretary to the Government, Department of Revenue, Ministry of Finance, New Delhi - 110 001 . ...PETITIONERS AND PRIMARY AGRICULTURAL COOPERATIVE CREDIT SOCIETY LIMITED, NANDIKANDI, Rep. by Secretary Chowdaripeta Swetha, Wo. Chowdaripeta Venkatesham, Occupation. Business, Aged about 36 years, Rl/O. Door No 2 2 Nandikandi Village , Sadasivpet Mandal, Medak 502306. Telangana, lndia. PAN. AAABP0962C, Assessment Year. 201 5-1 6 ...RESPONDENT 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 in WP No 31879 ol 2024 for fresh adjudication considering the Order dated 10.C4.2026 passed by the Hon'ble Supreme Court in lncome Tax Officer, Ward 2(1), Ohandigarh & Ors. v. Tej Partap Singh and connected batch matters. This petition coming on for hearing. upon perusing the petition and the affidavit filed in support thereof and upon hearing the arguments of Ms. J. SUNITHA (SENIOR SC FOR INCOME TAX), counsel for the Petitioner and SRI THANNERU CHAITANYA

"l.A.No.1 ol 2026 is filed by the respondent/Income Tax Department seeking for the recallinq the order, dated 02.05.2025, in W?.No.31879 of 2024 in terms of recent decis on 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, permir ting the petitioners- therein to question the constitutional validity of the provision under Section 147-A of Income Tax Act, 1961. This Court while disposing of the instant writ petition at the firsr 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 alI those matters pending before the Hon'ble Supreme Court to the respective High Courts. We are of the constdered opinion that a strong case for recalling the order dated 02.05.2025 has also been made out. Accordingly, IA No.t of 2026 stands allowed and the earlier order stands recalled." L. VIJAYA LAXMI- ASSISTANTEEGISTRAR //// \ SESTION OFFICER To,

1.

The income tax officer ward 1, Sangareddy lncome Tax Office, Veerabhadra Nagar, New Bus Stand, Veerabhadra Nagar, Sangareddy, Telangana-502001 Telangana State.

2.

The Principal Chief Commissioner of lncome Tax-, Telangana and A.P, Hyderabad, lT Towers, AC Guards, Masab Tank, Hyderabad -500 028, Telangana.

3.

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

4.

The Central Board of Direct Taxes., Represented by its Chairman, Department of Revenue, Ministry of Finance, Government of lndia, Secretariat Buildings, New Delhi - '1 10 001 .

5.

The Secretary to the Government, Ministry of Finance, Department of Revenue, The Union of lndia, New Delhi - 110 001 .

6.

The Section Officer, Posting Section, High Court for the State of Telangana, Hyderabad.

7.

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

8.

One CC to SRI THANNERU CHAITANYA KUMAR, Advocate [OPUC]

9.

One CC to Ms. J. SUNITHA (SENIOR SC FOR INCOME TAX) [OPUC]

10.

Two CD Copies BN GJP 4+

HIGH COURT DATED: 1310812026 ORDER l.A. NO: 1 OF 2026 IN WP.No.31879 of 2024 ALLOWING THE IA., TWO DRAFTS NOTE: LIS I ON 17.0s 2026 AL(ING WITH BATCH 'dE o .,r rAlf { ( oU 21 SEP flM oF.gPATCH z65 * * T nl',lx

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