Primary Agricultural Cooperative Credit Society vs. The income tax officer

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WP/27433/2024HC TelanganaHBHC01053323202401 May 2025Author: P.SAM KOSHY,NARSING RAO NANDIKONDA4 pages
AI SummaryAllowed

What did the High Court hold?

The High Court allowed I.A. No. 1 of 2026, thereby reviving Writ Petition No. 27433 of 2024. The Court reasoned that the Supreme Court's decision on 10.04.2026, in the 'faceless batch' of cases, remitted all such matters to the respective High Courts and permitted petitioners to question the constitutional validity of Section 147-A of the Income Tax Act. Given that the original writ petition was disposed of with liberty to move for revival subject to the outcome of these Supreme Court matters, and the Supreme Court has now remitted them, the High Court found a strong case for revival. The operative direction is the allowance of the interlocutory application, leading to the revival of the writ petition for fresh adjudication.

What were the facts?

This matter concerns an interlocutory application (I.A. No. 1 of 2026) filed by the Income Tax Department (Petitioners/Respondents) seeking the revival of Writ Petition No. 27433 of 2024. The original writ petition was filed by the Primary Agricultural Cooperative Credit Society (Respondent/Writ Petitioner) for the assessment year 2019-20. The writ petition had been disposed of earlier, with liberty granted to either party to seek revival subject to the outcome of matters pending before the Supreme Court concerning faceless proceedings. The present application is filed in light of a Supreme Court order dated 10.04.2026 in a batch of cases, including Income Tax Officer, Ward 2(1), Chandigarh & Ors. v. Tej Partap Singh, which remitted matters to respective High Courts for fresh adjudication.

What were the issues?

1. Whether the Writ Petition No. 27433 of 2024 should be revived for fresh adjudication in light of the Supreme Court's order dated 10.04.2026 in the faceless batch of cases. Assessee's Contention: The Respondent/Writ Petitioner has not filed any specific contentions in the provided text regarding this interlocutory application. The application is filed by the Petitioners/Respondents (Income Tax Department). Revenue's Contention: The Petitioners/Respondents (Income Tax Department) contend that the Supreme Court, in its order dated 10.04.2026, remitted matters concerning faceless proceedings to the respective High Courts, permitting petitioners therein to question the constitutional validity of Section 147-A of the Income Tax Act. They argue that this order creates a strong case for the revival of the present writ petition, which was previously disposed of with liberty to seek revival based on such outcomes.

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 (Special Original Jurisdiction) TUESDAY, THE FIRST DAY OF SEPTEMBER TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA I.A.NO.1 0F 2026 IN WRIT PETITION NO: 274330F 2024 Between: 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 1 . The income tax officer, ward 1, Khammam/ lncome Tax Office, Rajeev Gunt' Rajiv Chowk, Near Kinnerasani Theatre, Khammam 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 - 't 10 001 . 5.TheUnionoflndia,RepresentedbyitsSecretarytotheGovernment, Department of Revenue, Ministry of Finance, New Delhi - 110 001 ' ......PETITIONERS/RESPONDENTS AND Primary Agricultural Cooperative Credit Society, Thakkellapadu' Rep By its S".retlr, M K1"hnu, S/o. Seeta Ramulu Munaganti, Occupation Business Ag-ed uOoui Sf'y"ur., RlO. Main Road , Thakkellapadu Yerrupalem Khammam 507201' Telangani, India. PAN. AACAP0037D Assessment Year' 2019-20' .,...RESPONDENTMRIT PETITIONER the order dated 01 .05.2025 passed in W,P. No. 2743312024 to file 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 Petitioners : SRI K.SUDHAKAR REDDY, LEARNED SENIOR STANDING COUNSEL FOR INCOME TAX Counsel for the Respondent : Ms. MYTHRI INDUKURI

The Court made the following ORDER l.A.No.1 ot 2026 is filed by the respondenUlncome Tax Department seeking for the restoration of present Writ Petition No.27433 of 2024 in terms of recent decision of the Hon'ble Supreme Court in the faceless batch which was decided on 1t).04.2026, whereby the mafters 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 lncome 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 faceless'proceedings. Given the fact that the Hon'ble Supreme Court has itself remitted all those matters pencling 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 petitiorr has also been made out. Accordingly, l.A.No.1 of 2026 stands allowed. //II Sd/-A.H.S.GOWRI SHANKAR ASSISTANTBEGISTRAR \\ sEg/ioN oFFtcER To 1. The lncome Tax Officer, ward 1, Khammam/ Income Tax Office, Rajeev Gunt, Rajiv Chowk, Nlear Kinnerasani Theatre, Khammam Telangana State,

2.

The Principal Chief Commissioner of lncome Tax Telangana and A.p., Hyderabad, lT Towers, AC Guards, Masab Tank, Hyderabad - 500 02g, Telangana.

3.

The National f:aceless Assessment Center, lncome Tax Department, New Delhi.

4.

The Chairman, Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Government of lndia, Secretariat Buildings, New Delhi _ 110001,

5.

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

6.

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

7.

The Section Officer, D.B. Section, High Court for the State of Telangana at Hyderabad.

8.

One CC to SRI K.SUDHAKAR REDDY, LEARNED SENIOR STANDING COUNSEL FOR INCOME TAX [OPUC]

9.

One CC to Ms. MYTHRI INDUKURI, Advocate [OPUC] 10.Two CD Copies SA PVL ' llr

HIGH COURT DATED: 0110912026 ORDER |.A.NO.1 0F 2026 IN WP.No.27433 of 2024 ALLOWING THE I.A. t3 coPies 'f? d lesrPzut q 1 P.E 5TA 7E ofspqr C 'v2 o -b, +r) * t r1 lcn Iae

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