PRIMARY AGRICULTURAL COOPERATIVE CREDIT SOCIETY LIMITED YELDURTHY vs. The Income Tax Officer Ward 1

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WP/32157/2024HC TelanganaHBHC01062258202401 May 2025Author: P.SAM KOSHY,NARSING RAO NANDIKONDA3 pages
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What did the High Court hold?

The High Court, in its order dated September 29, 2026, has not decided the merits of the writ petition. Instead, it has granted an interim stay of the impugned assessment order and the demand notice. The Court has listed the writ petition along with a batch of similar cases. The interim stay has been granted in light of an order passed by the Hon'ble Supreme Court in Diary No. 2196 of 2026 and batch, decided on April 10, 2026. The specific reasoning for the interim stay is not detailed in this order, other than referencing the Supreme Court's order. No finding has been made on the validity or legality of the assessment order itself at this stage. The operative direction is to stay the impugned order.

What were the facts?

The petitioner, Primary Agricultural Cooperative Credit Society Limited, Yeldurthy, represented by its Secretary, filed a writ petition before the High Court for the State of Telangana at Hyderabad. The petition challenges an assessment order dated March 9, 2024, passed by the National Faceless E-Assessment Centre under Section 147 read with Section 144 and Section 144B of the Income Tax Act, 1961, for the Assessment Year 2018-19. This order determined the total income of the petitioner at Rs. 7,43,42,276. The petitioner seeks to declare this order as arbitrary, illegal, without jurisdiction, and violative of constitutional and statutory provisions. The petitioner also filed an interlocutory application seeking a stay of the impugned assessment order and the demand notice pending the disposal of the writ petition.

What were the issues?

1. Whether the assessment order passed under Section 147 read with Section 144 and Section 144B of the Income Tax Act, 1961, for the Assessment Year 2018-19, determining the total income at Rs. 7,43,42,276, is arbitrary, illegal, bad in law, without jurisdiction, void-ab-initio, and violative of the principles of natural justice, Articles 14, 19(1)(g), and 265 of the Constitution of India, and Section 148A of the Income Tax Act, 1961. Assessee's Contention: The assessee argues that the assessment order is illegal, arbitrary, and passed without jurisdiction, violating fundamental constitutional rights and principles of natural justice. They rely on the Constitution of India, specifically Articles 14, 19(1)(g), and 265, and Section 148A of the Income Tax Act, 1961. Revenue's Contention: The judgment does not record specific contentions made by the revenue at this stage. However, the revenue is represented by learned Senior Standing Counsel for the Income Tax Department.

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 144B,Section 148A,Section 156

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
a34/.7 | IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE TWENTY NINTH DAY OF SEPTEMBER TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA WRIT PETITION NO: 32157 OF 2024 Between: PRIMARY AGRICULTURAL COOPERATIVE CREDIT SOCIETY LIMITED YELDURTHY, Rep. by the Secretary AKKALA SIDDAIAH, S/o. PAPAIAH AKKALA, Aged about 60 years, Occupation. Business, R/o. PACS YELDURTHY, YELDURTHY, MEDAK 502255, Telangana, lndia. PAN. AAABP0924C, Assessment Year. 2018-1 9. .....PETITIONER AND 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 Commissioner of lncome Tax - Telangana and A.P., Hyderabad, lT Towers, AC Guards, Masab Tank, Hyderabad - 500028, Telangana. 3. The Central Board of Direct Taxes, Represented by its Chairman, Department of Revenue, Ministry of Finance, Government of lndia, Secretariat Buildings, New Delhi - 110 001. 4. The National Faceless Assessment Center, lncome Tax Department, New Delhi. 5. The Union of lndia, Represented by its Secretary to the Government, Department of Revenue, Ministry of Finance, New Delhi - 110001. .....RESPONDENTS Petition Under Arlicle 226 of the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue an appropriate writ, order or direction more particularly one in the nature of Writ Mandamus, declaring the order passed by the income tax authorities National Faceless E-Assessment Centre completed the assessment U/S 147 r.w.s 144 rcad with section 1448 Date of 09-03-2024, DIN ITBA/AST/ S/ 14712023' 24t1062311682(1) for the Assessment Year 2018-19 determining the total income of Rs. 7,43,42,276! as arbitrary, illegal, bad in law, without jurisdiction, void-ab-initio, violative of the principles of natural justice apart from being violative of Articles 14, 19(1)(g) and 265 of the Constitution of lndia and Sec. 148,4 of the lncome Tax Act, '1961, and consequently set aside the same in the interests of justice. |.A.NO:1 OF 2024 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 suspend the order Under section 147 r.w. s 144 read with section '144B Date of 09- 03-2024, DIN ITBA/ASTlsl 14712023-2411062311682(1) for the Assessment Year 2018-19 determining the total income of Rs. 7,43,42,276l- and Demand notice u/s 156 of the Income Tax act 1961, vide DIN and Notice No. ITBtuAST/SI 15612023- 2411062311769(1) Dt. 09-03-2024 'for the assessment year 2018-19 pending disposal of the above writ petition. Counsel for the Petitioner : SRI THANNERU CHAITANYA KUMAR Counsel for the Respondent : SRI KAMASANI SUDHAKAR REDDY, LEARNED SENIOR STANDING COUNSEL FOR THE INCOME TAX DEPARTMENT

The Court made the following ORDER List along with batch. Meanwhile, there shall be interim stay of the impugned order, in the light of the order granted by the Hon'ble Supreme Court vide its order Diary No.2196 of2026 and batch decided on104-2O26. OSMAN ALI BAIG ASSISTANT REGISTRAR //// SECTION OFFICER To 1 The lncome Tax Officer Ward 1 , Siddipet lncome Tax Otfice, S-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 - 500028, Telangana.

3.

The Chairman, Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Government of lndia, Secretariat Buildings, New Delhi - 110 001 .

4.

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

5.

The Secretary to the Government, Union of lndia, Department of Revenue, Ministry of Finance, New Delhi - 1 10001 .

6.

One CC to SRl. THANNERU CHAITANYA KUMAR, Advocate [OPUC]

7.

One CC to SRI KAMASANI SUDHAKAR REDDY, LEARNED SENIOR STANDING COUNSEL FOR THE INCOME TAX DEPARTMENT, Advocate [OPUC]

8.

Two CD Copies SA MS \%.

HIGH COURT DATED: 2910912026 List alons with batch ORDER WP.No.32'157 ot 2024 INTERIM STAY. HE STA 16' 1 ( :...) t. t 2 0[I 2[26 za ,+ ii - i-arC.,.?:J toC'tlb &^"-. \o

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