PRIMARY AGRICULTURAL COOPERATIVE SOCIETY BETHUPALLI GANGARAM vs. The income tax officer ward 1

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WP/27375/2024HC TelanganaHBHC01053211202401 May 2025Bench: P.SAM KOSHY,NARSING RAO NANDIKONDA4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court has not decided the merits of the case. Instead, it has granted an interim stay of the impugned order dated January 16, 2024, passed by the National Faceless E-Assessment Centre. This decision is made in light of an order granted by the Hon'ble Supreme Court in Diary No. 2196 of 2026 and batch, decided on April 10, 2026. The High Court has directed that there shall be an interim stay of the order under challenge. The operative direction is to list the matter along with a batch of similar cases. No finding has been reached on the validity or legality of the assessment order itself, nor has any specific issue been decided on its merits. The question of whether the assessment order is arbitrary, illegal, or violative of any provisions remains to be adjudicated.

What were the facts?

The petitioner, Primary Agricultural Cooperative Society Bethupalli Gangarama, represented by its Secretary, filed a writ petition before the High Court for the State of Telangana at Hyderabad. The petition challenges an order passed by the National Faceless E-Assessment Centre on January 16, 2024, for Assessment Year 2016-17. This order completed the assessment under Section 147 read with Section 144 and Section 144B of the Income Tax Act, 1961, determining the total income at Rs. 12,23,66,092. The petitioner contends that this order is arbitrary, illegal, without jurisdiction, void-ab-initio, and violative of natural justice and constitutional provisions. The High Court, in light of a Supreme Court order, granted an interim stay of the impugned order.

What were the issues?

1. Whether the order passed by the National Faceless E-Assessment Centre completing the assessment under Section 147 read with Section 144 and Section 144B of the Income Tax Act, 1961, for Assessment Year 2016-17, determining the total income at Rs. 12,23,66,092, is arbitrary, illegal, bad in law, without jurisdiction, void-ab-initio, and violative of the principles of natural justice, Articles 14, 19(1)(g), and 265 of the Constitution of India, and Section 148A of the Income Tax Act, 1961? The Petitioner's contentions: The petitioner argues that the assessment order is arbitrary, illegal, without jurisdiction, void-ab-initio, and violative of natural justice and constitutional provisions, specifically Articles 14, 19(1)(g), and 265, as well as Section 148A of the Income Tax Act, 1961. They seek to set aside the order. The Revenue's contentions: The judgment does not record any specific contentions made by the revenue at this stage. The matter is listed along with a batch of cases, and an interim stay has been granted.

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 144B,Section 148A

AI-generated summary — verify with the full judgment below

a34471 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE SECOND DAY OF SEPTEMBER TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA wRlT PETITION NO: 27375 OF 2024 Between: PRIMARY AGRICULTURAL COOPERATIVE SOCIETY BETHUPALLI GANGARAM, Rep. By lts Secretary, Cheepu Veeraswamy, S/o. Sanjeevaiah 9!''.qqp.r,, 9"cCpation Business Aged about 51years, FyO 5-1 16 ,Bdthupalle {f41444\,t Bathupalli Ganagaram 8.0 507303, Telangana, tndia. PAN AABAP9822H Assessment Y eat 20 1 6-17 ...PETITIONER AND 1. The income tax officer ward 1, Khammam/ lncome Tax Office, Rajeev Gunt, Rajiv Chowk, Near Kinnerasani Theatre, Khammam Telangana Stat'e. 2 T.he Principal Cfrief Commissioner of lncome Tax-Telangana and A.p, Hyderabad, lT Towers, AC Guards, 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 lhdia, 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 - 11 0 001 . ...RESPONDENTS Petition under Article 226 of Ihe Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue an appropriate writ, order or direction more particularly one in the nature of Writ of Mandamus declaring the order passed by the lncome Tax Authorities (National Faceless E-Assessment Centre) completed the assessment UIS 147 r.w.s 144 read with section 1448 of the lncome-tax Act Date of 16-01-

2024, DIN ITBA/AST/S/14712023' 2411059781479(1)for the Assessment Year 2016-17 determining the total income of Rs.12,23,66'092las arbitrary, illegal, bad in law, without lurisdiction. void-ab-initio, violative of the principles of natural justice apart from being violative of Articles 14, t 9('l )(g) and 265 of the Constitution of lndia and Sec. 148A of the lncome Tax Act, 1961, and consequently set asrde the same. Counsel for the Petitioner: SRI THANNERU CHAITANYA KUMAR Counsel for the Respondents: SRI KAMASANI SUDHAKAR REDDY, Sr. SC FOR INCOME TAX The Court made the following: ORDER List along with batch. Meanwhile,thereshallbeinterimstayoftheimpugnedorder,inthelight of the order granted by the Hon'ble Supreme Court vide its order in Diary No.2196 of 2026 and batch decided on 10.04.2026' SD/. AHMED ABDULLAH KHAN ASSISTANT REGISTRAR //TRUE COPY// SECTION OFFICER To, 1. The lncome Tax Offtcer Ward-1, Khammam/ lncome Tax Office, Rajeev Gunt, nilv Chowk. Near Kinnerasani Theatre' Khammam-Te langana State 2. i;; Frincipai Chief Commissioner of lncome Tax-Telangana 9U l:I - Hyderabad. lT Towers, AC Guards, Masab Tank, Hyderabad -500 028, Telangana 3. The National Faceless Assessment Center, lncome Tax Department, New Delhi. 4. ihe Chairman, Central Board of Direct Taxes, Department of Revenue, tltini.t.y 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 - 11 0 001 O. The Seition Officer, Writ DB Section, High Court for the State of Telangana at Hvderabad. z f6e Section Officer, Writ Posting Section High Court for the State of Telangana at Hyderabad. 8. One cC to SRt THANNERU CHAITANYA KUIVIAR, Advocate [OPUC] e. one CC to sRl KAIVASANI SUDHAKAR REDDY, Sr SC FOR INCOME TAX loPUCl 6

10.One CC to SRI N.BHUJANGA RAO, DEPUTY SOLICITOR GENERIAL OF lNDIA, High Court for the State of Telangana at Hyderabad [OPUC] 1 1 . Two CD Copies BSR -. GJP FK

HIGH COURT DATED: 0210912026 ORDER WP.No.27375 of 2024 INTERIM STAY 1 7 SIP 202E "f, .t. 2 DRAFTS .% $E, 374 r .-i ,. r C', r' F .1. a.)' { ? lrr) il,, \''.', \t o ,...f'b fu.

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