Sri Lakshmi Narayana Swamy Temple vs. Union of India

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WP/26598/2024HC TelanganaHBHC01051771202402 May 2025Bench: P.SAM KOSHY,NARSING RAO NANDIKONDA2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court held that a strong case for review had been made out. The Court reasoned that the Supreme Court's decision in the faceless batch of cases, which remitted matters to the respective High Courts to permit petitioners to question the constitutional validity of Section 147-A of the Income Tax Act, 1961, warranted a review of the earlier order. Accordingly, the Court allowed the interlocutory application for review, recalling the earlier order dated 02.05.2025. The Court also granted an interim stay of the impugned order in light of the Supreme Court's decision. The writ petition was listed for further hearing along with connected matters. The issue of the constitutional validity of Section 147-A of the Income Tax Act, 1961, was to be decided in the subsequent proceedings.

What were the facts?

The Income Tax Department, as review petitioners, filed an interlocutory application (IA No. 1 of 2026) seeking to review an order dated 02.05.2025 passed in Writ Petition (WP) No. 26598 of 2024. This review was sought in light of a Supreme Court decision on 10.04.2026 concerning faceless proceedings, which remitted matters to High Courts to permit challenges to the constitutional validity of Section 147-A of the Income Tax Act, 1961. The High Court had previously granted liberty to parties to seek revival of the writ petition pending the Supreme Court's outcome. IA No. 2 of 2026 sought to dispense with the certified copy of the impugned order. The High Court allowed IA No. 1 of 2026, recalling the earlier order, and IA No. 2 of 2026. WP No. 26598 of 2026 was listed for hearing on 11.11.2026, with an interim stay granted on the impugned order.

What were the issues?

1. Whether a case for review of the order dated 02.05.2025 in WP No. 26598 of 2024 has been made out, in light of the Supreme Court's decision in the faceless batch of cases decided on 10.04.2026. Assessee's Contentions: Not recorded. Revenue's Contentions: The Revenue contended that a strong case for review had been made out due to the Supreme Court's decision in the faceless batch, which remitted matters to High Courts to allow challenges to the constitutional validity of Section 147-A of the Income Tax Act, 1961. They relied on the Supreme Court's order dated 10.04.2026 in Civil Appeal No. 004716 of 2026 and batch.

Which sections of the Income-tax Act were involved?

Section 147-A

AI-generated summary — verify with the full judgment below

HIGH COURT FOR THE STATE OF TELANGANA MAIN CASE No: W.P.No.26598 of 2024

PROCEEDINGS SHEET Sl. No. Date ORDER OFFICE NOTE 4. 28.10.2026 HACJ (PSK,J) & NNR,J Counsel for the review petitioners: Mr. Vijhay K Punna, learned Senior Standing Counsel for Income Tax

Review I.A.No.1 of 2026

This interlocutory application is filed by the Income Tax Department, who are respondents in the writ petition, seeking to review the order dated 02.05.2025 passed in the writ petition 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 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

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

2 are of the considered opinion that a strong case for review has been made out.

Accordingly this interlocutory application is allowed and the earlier order stands recalled. I.A.No.2 of 2026

This interlocutory application seeking to dispense with filing of the certified copy of the impugned order is allowed. W.P.No.26598 of 2026

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.

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HACJ (PSK,J)

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NNR, J ES

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