Primary Agricultural Cooperative Credit Society Kandukuru vs. The Income Tax Officer

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WP/27353/2024HC TelanganaHBHC01053206202401 May 2025Bench: P.SAM KOSHY,NARSING RAO NANDIKONDA4 pages
AI SummaryAllowed

What did the High Court hold?

The High Court allowed the interlocutory application (I.A. No. 1 of 2026) and recalled the earlier order dated 01.05.2025 passed in W.P. No. 27353 of 2024. The Court reasoned that the Supreme Court, in its decision dated 10.04.2026, had remitted matters related to 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. Given that this Court had previously allowed parties to move for revival subject to the Supreme Court's outcome, and the Supreme Court has now remitted such cases, a strong case for recalling the earlier order was made out. The operative direction is the recall of the previous order, paving the way for fresh adjudication.

What were the facts?

The Income Tax Department (Petitioners) filed an interlocutory application (I.A. No. 1 of 2026) seeking to recall an order dated 01.05.2025 passed in Writ Petition No. 27353 of 2024. The original writ petition was filed by the Primary Agricultural Cooperative Credit Society Kandukuru (Respondent). The Department's application is based on a recent Supreme Court decision dated 10.04.2026 concerning faceless proceedings. The Supreme Court had remitted such matters to the respective High Courts, allowing petitioners to question the constitutional validity of Section 147-A of the Income Tax Act, 1961. This Court had previously granted liberty to the parties to seek revival of the writ petition subject to the outcome of the Supreme Court matters.

What were the issues?

1. Whether the order dated 01.05.2025 passed in W.P. No. 27353 of 2024 should be recalled in light of the Supreme Court's decision dated 10.04.2026 concerning faceless proceedings. Assessee's Contention (Implicit in the application): The Department argues that the Supreme Court's decision necessitates a review of the earlier order. The Supreme Court's remittance of similar matters to High Courts, permitting challenges to Section 147-A, creates a strong case for recalling the previous order to allow for fresh adjudication in light of this development. Revenue's Contention (Implicit in the application): The Revenue, as the Petitioner in the I.A., seeks the recall of the order to align the proceedings with the Supreme Court's directive. They contend that the Supreme Court's judgment has fundamentally altered the landscape for cases involving faceless assessments and the constitutional validity of Section 147-A, making the prior order unsustainable.

Which sections of the Income-tax Act were involved?

Section 147-A

AI-generated summary — verify with the full judgment below

a34471 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) THURSDAY, THE THIRTEENTH DAY OF AUGUST TWO THOUSAND AND TWENW SIX PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA I.A.No.1 ot 2026 IN WRIT PETITION NO: 27353 OF 2024 Between: AND '1 . The lncome Tax Officer-Ward l, Khammam/ lncome Tax Office, Rajeev Gunt, Rajiv Chowk, Near Kinnerasani Theatre, Khammam Telangana State. 2. The Principal Chief Commissioner of Income Tax-Telangana and AP, Hyderabad, IT Towers, AC Guardq Masab Tank, Hyderabad - 500 028, Telangana. 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 - 110 001 .,.PETITIONERS Primary Agricultural Cooperative Credit Society Kandukuru, Rep. By its CEO Jaggavarapur Suryaprakash Reddy, S/o. Laxmareddy Jaggavarapu, Occupation. Business, Aged about 56 years, Fl/o. Kandukur ,Vemsoor Mandal, Khammam-507'164, Telangana, lndia. PAN: AACAP1220E Assessment Year: 201 8-1 9. ...RESPONDENT 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.273s312024 for fresh

adjudication in light of tl're Order dated 10.04.2026 passed by the Hon'ble Supreme Court in lncome Tax Offioer, Ward 2(1), Chandigarh & Ors. v. Tej Partap Singh. Counsel for the Petitioner: SRI THANNERU CHAITANYA KUMAR Counsel for the Respondents: SRI KAMASANI SUDHAKAR REDDY, Sr. SC FOR lT The Court made the following: ORDER l.A.No.1 ot 2026 is filed by the respondenUlncome Tax Department seeking for the recalling the order, dated 01.05.2025, in WP.No.27353 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 alt 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 ot 2026 stands allowed and the earlier order stands recalled. I'o, oi''\'i,?l-*'i3i.?'Jffi //TRUE COPY// , \ \, ',. \.gEcTtoN oFFtcER , 'l The lncome Tax Officer-Ward l,{hammaml tncofrefax Office, Rajeev Gunt, Rajiv Chowk, Ne_ar Kinnerasani Theatre, KhammarilTelangana State. The principa-l chief commissioner of rncome Tax-Tdtanga;i -ano Rp. iJ,X|'r'i# rr rowers, AC Guards, rrlasao-ianr, nvlerio"at': ;od &b: s:ihjNational Faceless; Assessment Center, lncome Tax Department, New 1 2 J

4.

The Chairman, Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Government of lndia, Secretariat Buildings, New Delhi - 1 '10 001 5. The Secretary to the Government, Department of Revenue, Ministry of Finance, New Delhi, Union of lndia - 't 10 001 6. One CC to SRI THANNERU CHAITANYA KUMAR, Advocate [OPUC] 7. One CC to SRI KAMASANI SUDHAKAR REDDY, Sr. SC FOR lT IOPUC] 8. One CC to SRI N.BHUJANGA RAO, DEPUTY SOLICITOR GENERIAL OF lNDIA, High Court for the State of Telangana at Hyderabad [OPUC] 9. Two CD Copies BSR rJw

2 DRAFTS HIGH COURT DATED: 1310812026 ORDER l.A.No.1 of 2026 !N WP.No.27353 of 2024 1HE STAIf 2 5 AUE 202[ t) )) z 6) .L * DespATc'+. ALLOWING THE I.A. & RECALLING THE ORDER OF WRIT PETITION $ ..6"t\ Xr6e *

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