PRIMARY AGRICULTURAL COOPERATIVE CREDIT SOCIETY NARAYANAPURAM vs. The Income tax officer ward 1

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WP/28924/2024HC TelanganaHBHC01056195202401 May 2025Author: P.SAM KOSHY,NARSING RAO NANDIKONDA2 pages
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What did the High Court hold?

The High Court allowed I.A.No.1 of 2026, recalling the order dated 01.05.2025. The Court reasoned that the Supreme Court's decision in the faceless proceedings batch, which 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, 1961, created a strong case for recalling the earlier order. The Court noted that its previous order had granted liberty to move for revival subject to the outcome of Supreme Court matters. Consequently, the earlier order was recalled. The case was then listed along with other connected matters for further consideration on 11.11.2026, in light of the amendment and challenge to the vires of Section 147-A. Interim stay of the impugned order was granted, referencing the Supreme Court's order in Civil Appeal No.004716 of 2026 and batch.

What were the facts?

The Income Tax Department (Revenue) filed an Interlocutory Application (I.A.No.1 of 2026) seeking to recall an earlier order dated 01.05.2025 passed in W.P.No.28924 of 2024. The recall was sought based on a recent Supreme Court decision dated 10.04.2026 concerning faceless proceedings, which remitted matters to respective High Courts and permitted 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, granting liberty to parties to seek revival subject to the outcome of Supreme Court matters. Given the Supreme Court's remittance, the High Court found a strong case for recalling its earlier order.

What were the issues?

1. Whether the order dated 01.05.2025 in W.P.No.28924 of 2024 should be recalled in light of the Supreme Court's decision in the faceless proceedings batch decided on 10.04.2026. (Question of law) Assessee (Petitioner): Not applicable as the assessee is the petitioner in the writ petition and the application is filed by the Revenue. Revenue (Respondent): Contended that the Supreme Court's decision in the faceless batch, which remitted matters to High Courts and allowed challenges to the constitutional validity of Section 147-A of the Income Tax Act, 1961, necessitates the recall of the earlier order. Relied on the Supreme Court's decision 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
HIGH COURT FOR THE STATE OF TELANGANA MAIN CASE No: W.P.No.28924 of 2024 PROCEEDINGS SHEET Sl. No. Date

OFFICE NOTE 2 28.10.2026 HACJ (PSK,J) & NNR,J Counsel for the petitioners: Mr. Kamasani Sudhakar Reddy, learned Senior Counsel Standing Counsel for Income Tax Department.

I.A.No.1 of 2026

I.A.No.1 of 2026 is filed by the respondent/Income Tax Department seeking to recall the order, dated 01.05.2025, in W.P.No.28924 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 the Income 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

Transferred to i/o folder, before corrections, if any.

2 recalling the order dated 01.05.2025 has also been made out.

Accordingly, IA No.1 of 2026 stands allowed and the earlier order stands recalled. W.P.No.28924 of 2024

List this case along with W.P.Ṇo.35311 of 2026 and other connected matters on 11.11.2026 before an appropriate Bench as per roster in the light of amendment and challenge made to the vires of the provisions contained in Section 147-A of the Income Tax Act, 1961. Meanwhile, there shall be interim stay of the impugned order in the light of the order passed by the Hon’ble Supreme Court in Civil Appeal No.004716 of 2026 and batch (arising out of SLP (C) No. 014521 of 2026 and batch; Diary No.2196 of 2026 and batch) decided on 10.04.2026. ________________

HACJ (PSK,J)

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NNR, J ES

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