Ahmedia Traders vs. Income Tax Officer

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WP/26616/2024HC TelanganaHBHC01051772202402 May 2025Bench: P.SAM KOSHY,NARSING RAO NANDIKONDA4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court allowed the application (I.A. No. 1 of 2026) and recalled its earlier order dated 02.05.2025. The Court reasoned that the Supreme Court, in its decision dated 10.04.2026, had remitted all pending matters concerning faceless proceedings to the respective High Courts, granting liberty to question the constitutional validity of Section 147-A of the Income Tax Act, 1961. Given that the High Court had previously granted liberty to move for revival subject to the outcome of the Supreme Court matters, and the Supreme Court had indeed remitted such matters, a strong case was made out for recalling the order. The operative direction was the recall of the previous order, enabling further proceedings.

What were the facts?

The Income Tax Department (Petitioners) filed an application (I.A. No. 1 of 2026) before the High Court of Telangana seeking to recall an order dated 02.05.2025 passed in Writ Petition No. 26616 of 2024. The original writ petition was filed by Ahmedia Traders (Respondent/Writ Petitioner). The Department's application was based on a subsequent Supreme Court decision dated 10.04.2026 in a batch of cases concerning faceless proceedings. The High Court had previously disposed of the writ petition with liberty to the parties to move for revival, pending the Supreme Court's decision. The Supreme Court's order remitted matters to the respective High Courts, allowing petitioners to question the constitutional validity of Section 147-A of the Income Tax Act, 1961.

What were the issues?

1. Whether the High Court should recall its earlier order dated 02.05.2025 in Writ Petition No. 26616 of 2024 in light of the Supreme Court's order dated 10.04.2026. (Question of law and procedure). Assessee's Contention: The judgment does not record any specific contentions made by Ahmedia Traders in support of the application to recall the order. However, the application itself, filed by the Income Tax Department, implicitly seeks recall based on the Supreme Court's decision. Revenue's Contention: The Income Tax Department (Petitioners) contended that the Supreme Court's decision in the faceless batch of cases, which remitted matters to the High Courts and allowed questioning of Section 147-A, necessitates the recalling of the High Court's earlier order. This would permit fresh adjudication in light of the Supreme Court's directive.

Which sections of the Income-tax Act were involved?

Section 147-A

AI-generated summary — verify with the full judgment below

134471 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) THURSDAY, THE THIRTEENTH DAY OF AUGUST TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA |A.NO. 1 0F 2026 IN WRIT PETITION NO: 26616 OF 2024 Between: 'l . lncome Tax Officer, Ward 9(1), Hyderabad, l.T. TOWER, AC Guards, Masab Tank, Hyderabad, Andhra Pradesh- 500004 2. The Principal Chief Commissioner of lncome Tax, AP & TS, 1Oth Floor, C- Block, l.T.Towers, 10-2-3, A.C.Guards, Hyderabad -500004 3. Assessment Unit, National Faceless Assessment Centre, lncome Tax Department, tMinistry of Finance Room No. 4O1 , 2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, Delhi- '1 10003 ...PETITIONERS/RESPONDENTS AND Ahmedia Traders, Represented by Partner Mohammed Fasiuddin Ahmed Occ Business, 20-7-6711, Himmatpura Shah ali banda, HYDERABAD 500065, Telangana. ,..RESPONDENTMRIT PETITIONER 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 02.05.2025 passed in W.P. No. 2661612024 for fresh adjudication in light of the Order dated '10.04.2026 passed by the Hon'ble Supreme Cou( in lncome Tax Officer, Ward 2(1), Chandigarh & Ors. v. Tej Partap Singh

2 This petition coming on for hearing, upon perusing the !)etition and affidavit filed in the support thereof and upon reading the order dated 02.05.2025 in WP No.266'16 oI 2025 and upon hearing the arguments of SRl. KAMASANI SUDHAKAR REDDY , SENIOR SC FOR INCOME TAX, appearing on behalf of the Petitioners and SRI K. PARIKSHITH appearing on behalf rf the Respondent. The Court made the following: ORDER t.A.No.l of 2026 is filed by the respondent/lnconre Tax Department seeking for the recalling the order, dated 02.05.2025, in WP'No.26616 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 wete 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 petitiotl at the first instant, had granted the libedy to the either of the parties to movet 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'bte Supreme Court has itself remitted all those mafters pending before the Hon'ble Supreme Cou,4 to the respective High Courts. We are of the considered opinion that a strong case for recalling the order dated 02.05.2025 has also been made out. Accordin.qly, lA No.l of 2026 stands allowed and the earlier order stands recalled. SO/. L. VIJAYA LAXMI ASSISTANT REGISTRAR //TRUE COPY' SECTION OFFICER To, 1. lncome Tax Officer, Ward 9(1), Hyderabad, l.T. TOWEFI, AC Guards, Masab Tank, Hyderabad, Telangana- 500004 2. The Principal Chief Commissioner of lncome Tax, AP & TS' 1Oth Floor, C- Block, l.T.Towers, 10-2-3, A.C.Guards, Hyderabad -500C04 6

J 3. Assessment Unit, National Faceless Assessment Centre, lncome Tax Department, Ministry of Finance Room No. 4O1, 2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, Delhi- 1 10003 4. Ahmedia Traders, Represented by Partner Mohammed Fasiuddin Ahmed Occ Business, 20-7-6711 , Himmatpura Shah ali banda' HYDERABAD 500065, Telangana. 5. The Section Officer Writ Division Bench Section High Court for the State of Telangana, Hyderabad 6. The Section Officer, Posting Section, High Court for the State of Telangana' at Hyderabad. 7. One CC to SRl. PARIKSHITH KUTUR Advocate IOPUC] 8. One CC to SRI KAI\,'IASANI SUDHAKAR REDDY, (Sr. SC FOR INCOME TAX)tOPUCl 9. Two CD Copies BM TKS *

4 HIGH COURT DATED: 1310812026 2 DRAFTS Ltsr oN 27.08.2026 11\L STArg oA itq ,/5 rC) $ 2 S't? 21tt z 6tb ORDER lA NO .1 OF 2026 lN WP.No.26616 of 20 IA !S ALLOWED * ^lT ,' le lr-r * Drspn-i

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