MADHUSUDHANA RAO DIRISALA vs. INCOME TAX OFFICER

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WP/22835/2025HC TelanganaHBHC01045112202504 August 2025Bench: P.SAM KOSHY,S.CHALAPATHI RAO3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court allowed the Interlocutory Application (IA No. 1 of 2026). The Court reasoned that the Supreme Court, in its decision dated 10.04.2026 concerning faceless proceedings, had remitted all such matters to the respective High Courts for fresh adjudication. This included permitting petitioners to question the constitutional validity of Section 147-A of the Income Tax Act. Given that the present writ petition was previously disposed of with liberty to seek revival based on the outcome of those Supreme Court matters, and the Supreme Court has now remitted them, the Court found a strong case for revival. Therefore, Writ Petition No. 22835 of 2025 is to be revived for fresh adjudication. The operative direction is the allowance of the IA, leading to the revival of the writ petition.

What were the facts?

This case involves an Interlocutory Application (IA) filed by the Income Tax Department (Petitioners) seeking to revive Writ Petition No. 22835 of 2025. The original writ petition was filed by Madhusudhana Rao Dirisala (Respondent) and was disposed of earlier. The Department's application is based on a recent Supreme Court decision dated 10.04.2026 in a batch of matters concerning faceless proceedings. The Supreme Court, in its order, remitted all such matters to the respective High Courts for fresh adjudication, allowing petitioners to question the constitutional validity of Section 147-A of the Income Tax Act. The High Court had previously granted liberty to either party to seek revival of the writ petition subject to the outcome of the Supreme Court proceedings.

What were the issues?

1. Whether the present Writ Petition No. 22835 of 2025 should be revived for fresh adjudication in light of the Supreme Court's order dated 10.04.2026 in the faceless batch matters. Assessee's Contention: The Respondent (assessee) has not explicitly recorded arguments in this specific IA. However, the initial writ petition was filed by the assessee. The Department's application for revival implies the assessee would be permitted to proceed with their original challenge. Revenue's Contention: The Petitioners (Revenue) argue that the Supreme Court's decision in the faceless batch matters, which remitted cases to High Courts for considering the constitutional validity of Section 147-A of the Income Tax Act, creates a strong case for reviving the present writ petition. They rely 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

[ 348e ] IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) FRIDAY, THE TWENTY FOURTH DAY OF JULY TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE SUDDALA CHALAPATHI RAO l.A. NO: 1OF 2026 IN WRIT PETITION NO: 22835 OF 202s Between: 1. lncome Tax Officer, Ward - 11(1), Hyderabad. Towers, A.C. Guards, Hyderabad - 500004. 2. Principal Commissioner Of lncome Tax - 2, A.C.Guards, Hyderabad - 500004. lncome Tax Office, l.T lncome Tax Towers, ...PETITIONERS AND Madhusudhana Rao Dirisala, H.No. 38, Mondikuntha KHAMMAM - 507302. Dist. Khammam ...RESPONDENT Petition under Sectlon 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to reviveirecall the order dated 04.08.2025 in WP No 22835 of 2025 for fresh adjudication considering 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 and connected batch matters. This petition comrng 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 UPADHYAY RAGHAVENDER, on behalf of Respondent, The Court made the following. ORDER "lA No.'l of 2026 is filed by the respondenVlncome Tax Department seeking for the restoration of present Writ Petition No.22835 of 2025 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 Constrtutional validity of the provisron under Section 147 -A of lncome Tax Act. This Court wh le disposing of the instant writ petition at the first instant, had granted the liberty to the either of the parties to move proper applicallon for revival, subject to the outcorne cf 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 revival of the present writ petition has also been made out. Accordingly. IA No.1 of 2026 stands allowed." SD/- S.MALLIKARJUNA RAO ASSISTANT REGISTRAR //TRUE COPY// \ l..- \secrro* oFFrcER To, 1 2 3 4 5 6 7 8 \- lncome Tax Officer, Ward - 1 1(1 ), Hyderabad. lncome Tax Offlce, l.T. Towers, A.C. Guards Hyderabad - 500004. Principal Commissioner Of lncome Tax - 2, lncome Tax Towers, A.C. Guards, Hyderabad - 500004 Madhusudhana Rao Dirisala, H.No.38, l\.4ondikuntha KHAMI/AIV - 507302. Dist. Khammam The Section Officer, Writ Posting Section, High Court for the State of Telangana. The Section Officer, Writ DB Section, High Court for the State of Telangana. One CC to SRI LJPADHYAY RAGHAVENDER, Advocate [OPUC] One CC to l\,4s - SUNITHA (SR. SC FOR TNCOME TAX) [OPUC] Two CD Copies BN TKS (rr(.

HIGH COURT DATED: 2410712026 ORDER l.A. NO: 1OF 2026 IN WP.No.22835 of 2025 ALLOWING THE IA., trr -1'rt\' c 7, ? J t.i z .L 6 02 3O JUL2 ,+ t t DESr'arC *be

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