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

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WP/27417/2024HC TelanganaHBHC01053238202401 May 2025Author: P.SAM KOSHY,NARSING RAO NANDIKONDA4 pages
AI SummaryPartly Allowed

What did the High Court hold?

The High Court allowed the Interlocutory Application (I.A. No. 1 of 2026). The Court held that a strong case had been made out for recalling the order dated 01.05.2025. This decision was based on the Supreme Court's order dated 10.04.2026, which remitted matters concerning faceless proceedings to the respective High Courts, specifically permitting petitioners to question the constitutional validity of Section 147-A of the Income Tax Act, 1961. The High Court acknowledged that it had previously granted liberty to the parties to seek revival of the writ petition, subject to the outcome of the Supreme Court's decisions. Given that the Supreme Court itself had remitted such matters, the High Court found it appropriate to recall its earlier order. The operative direction was that the earlier order dated 01.05.2025 stands recalled.

What were the facts?

The Income Tax Department (Petitioners/Respondents) filed an Interlocutory Application (I.A. No. 1 of 2026) before the High Court for the State of Telangana at Hyderabad. They sought to recall an order dated 01.05.2025, which was passed in Writ Petition No. 27417 of 2024. The Department's request was based on a recent Supreme Court decision dated 10.04.2026 in a batch of cases concerning faceless proceedings. The Supreme Court had remitted these matters to the respective High Courts, allowing petitioners to question the constitutional validity of Section 147-A of the Income Tax Act, 1961. The High Court had previously disposed of the writ petition with liberty to the parties to seek revival, pending the Supreme Court's decision.

What were the issues?

1. Whether the order dated 01.05.2025 passed in W.P. No. 27417 of 2024 should be recalled for fresh adjudication in light of the Supreme Court's order dated 10.04.2026? (Question of law and fact, concerning procedural fairness and constitutional validity of Section 147-A of the Income Tax Act, 1961). Assessee (Respondent in I.A.): The assessee argued that the Supreme Court's decision in the faceless batch cases, which remitted matters to High Courts for fresh adjudication on the constitutional validity of Section 147-A, necessitates the recalling of the earlier High Court order. They relied on the Supreme Court's order dated 10.04.2026. Revenue (Petitioner in I.A.): The Revenue argued that the Supreme Court's directive to remit matters to High Courts for considering the constitutional validity of Section 147-A provides a strong basis for recalling the previous order. They also relied on the Supreme Court's order dated 10.04.2026.

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 ELEVENTH DAY OF AUGUST 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: 27417 OF 2024 Between: 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 lt4asab Tank Hyderabad 500 028 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 110 001 5. The Union of lndia, Represented by its Secretary to the Government Department of Revenue Ministry of Finance New Delhi 110 0001 ...PETITIONERYRESPONDENTS AND Primary Agricultural Cooperative Society, Rep. By lts Secretary TIPPANI VEERA REDDY, S/o. VENKATA REDDY TIPPANI, Occupation. Business Aged about 60 years, R/O. P A C S Jakkepally , Kusumanchi Mandal l.K. Veeranjaneyulu, S/o: K. Koteswara Rao, aged about 34 years, Occ. Government Employee, Fl/o: Khammam, do hereby verify that the facts stated in the above paragraphs have been read over and explained to me in English nd that they are true and correct to the best of my knowledged and belief. Hence, verified on this 25th day of June, 2026 al Hyderabad Khammam Dist 507159 Telangana lnd ia. 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 01.05.2025 passed in W.P, No. 2741712024 tor fresh adjudication in light of the Order dated 10.O4.2026 passed by the Hon'ble Supreme Court in lncome Tax Officer, Ward 2(1), Chandigarh & Ors. v. Tej partap Singh. This petition coming on for hearing, upon perusing the petition and Memorandum of Grounds filed in the support thereof and upon reading the Order dated 01 .05.2025 in WP No.27417 oI 2024 and upon hearing the arguments of SRI Thanneru Chaitanya Kumar, appearing on behalf of the petitioners and SRI K. SUDHAKAR REDDY, appearing on behalf of the Respondent. The Court

made the following: ORDER l.A.No.1 of 2026 is filed by the respondenUlncome Tax Department seeking for the recalling the order, dated 01.05.2025, in Wp.No.27417 of 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 of 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 01.05.2025 has also been made out. Accordingly, lA No.1 ol 2026 stands allowed and the earlier order stands recalled. SO/. B.REKHA RANI ASSISTANT NREGISTRAR //// TO, 'l . The income tax officer ward 1, Khammam/ lncom SECTION OFFICER Ta>r Office, Rajeev Gunt, Telangana State. Rajiv Chowk, Near Kinnerasani Theatre, Khammam

2.

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

3.

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

4.

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

5.

The secretary to the Government Department of Revenue Ministry of Finance The Union of lndia, New Delhi 1'10 0001

6.

The Section Officer, writ D.B. Section, High court for The state of Telangana, at Hyderabad.

7.

The section officer, 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(Jr. SC FOR INCOME TAX) Advocate loPUCl 1 0. Two CD CoPies TJ TKS

HIGH COURT DATED: 1110812026 ORDER t.A.NO.1 0F 2026 IN WP.No.27417 of 2024 ALLOWING THE APPLICATION LrsT oN 27.08.2026 $'t STATE or ,l--\ ,;^\: ,/kL l/ * 'iJ v c,J '& ( fl v* z 2t2B 6l il .L,'/ {=/i 1r,// .y' * Dssrri.'i

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