Primary Agricultural Cooperative Society Motapuram vs. The income tax officer

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WP/27407/2024HC TelanganaHBHC01053301202401 May 2025Bench: P.SAM KOSHY,NARSING RAO NANDIKONDA4 pages
AI SummaryAllowed

What did the High Court hold?

The High Court allowed I.A. No. 1 of 2026, recalling the order dated 01.05.2025 passed in W.P. No. 27407 of 2024. The Court reasoned that the Supreme Court, in its order dated 10.04.2026, had remitted matters concerning faceless proceedings to the respective High Courts, permitting petitioners to question the constitutional validity of Section 147-A of the Income Tax Act, 1961. Given this development and the Court's prior liberty granted to the parties to seek revival, a strong case for recalling the earlier order was made out. The operative direction was to recall the order dated 01.05.2025.

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. 27407 of 2024. The writ petition was filed by the Primary Agricultural Cooperative Society Motapuram (Respondent). The Department's application was based on a recent Supreme Court decision dated 10.04.2026 concerning faceless proceedings. The High Court had previously disposed of the writ petition, granting liberty to the parties to seek revival based on the outcome of Supreme Court matters related to faceless proceedings. The Supreme Court's order 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.

What were the issues?

1. Whether the order dated 01.05.2025 passed in W.P. No. 27407 of 2024 should be recalled in light of the Supreme Court's order dated 10.04.2026 concerning faceless proceedings? (Question of law) Assessee's Contention (Implicit): The assessee (Respondent in I.A.) would likely argue that the recall is warranted given the Supreme Court's directive, which allows for fresh adjudication in light of the constitutional challenge to Section 147-A. Revenue's Contention (Implicit): The Revenue (Petitioners in I.A.) contends that the Supreme Court's decision necessitates the recalling of the previous order to permit fresh adjudication, particularly regarding the constitutional validity of Section 147-A, as permitted by the Supreme Court.

Which sections of the Income-tax Act were involved?

Section 147-A

AI-generated summary — verify with the full judgment below

13447 | 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 l.A.No.1 ot 2026 IN WRIT PETITION NO: 27407 OF 2024 Between: AND 1. The lncome Tax Officer Ward-1 , Khammam/ lncome Tax Office, Rajeev Gunt, Rajiv Chowk, Near Kinnerasani Theatre, Khammam Telangana State. 2. The Principal Chief Commissioner of Income Tax. Telangana a1-d- { i, Hyderabad, lT Towers, AC Guards, Masab Tank, Hyde.abad - 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 - 1'10 001 . 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 Society Motapuram, Eep By lts S_ecretary Vasam-setti Rangarao, S/o. Krishnaiah Vasamsetti, Occupation. Busine-ss Aged about 35 years, Rl/o. Main Road Kusumanchi , At Ku99qa1q[i,f9 Klsumanchi Kh5mmam 507159, Telangana, lndia. PAN. AACAP0030E 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.2740712024 to file for fresh

adjudication in light of the order dated 10.04.2026 passed 5y the Hon'ble Supreme Court in lncome Tax Officer, Ward 2(1), Chandigarh & Ors. v. Tej partap Singh. Counsel for the Petitioners: SRI KAMASANI SUDHAKAR REDDy, Sr. SC FOR lT Counsel for the Respondenr: SRt THANNERU CHA|TANYA KUMAR The Court made the following: ORDER LA.No.1 of 2026 is filed by the respondenUlncome Tax Department seeking for the recalling the order, dated 01.05.2025, in Wp.No.274O7 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 a 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 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 recalling the order dated 01.05.2025 has also been made out. Accordingly, lA No.1 of 2026 stands allowed and the earlier order stands recalled. SD/. M.NAGAMANI ASSISTANT REGISTRAR ,TRUE COPY// To, SECTION OFFICER The rncome Tax officer Ward-1, Khammam/ rncome Tax office, Rajeev Gunt, Rajiv Chowk. Near Ktnnerasani fneJire, Xnbmi'r.i"longrna State. The Principal Chief Com {[ffi : I i YJfi'" ;" T 3''d L"i]:: "1, jl:BT, J-:,, fi il : ffi ! ;. t % tiu ; Then liational Faceless Assessment Center, lncome Tax Department, New 1 2 3

4.

The Chairman, Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Government of India, Secretariat Buildings, New Delhi - 110 001. 5. The Secretary to the Government, Department of Revenue, Ministry of Finance, New Delhi - 1 10 001 . 6. The Secretary, Vasamsetti Rangarao, S/o. Krishnaiah Vasamsetti, Primary Agricultural Cooperative Society Motapuram, Occupation. Business, R/o. Main Road Kusumanchi , At Kusumanchi Po Kusumanchi Khammam 507159, Telangana, India. 7. One CC to SRI THANNERU CHAITANYA KUMAR Advocate IOPUC] 8. One CC to SRI KAMASANI SUDHAKAR REDDY, Sr. SC FOR INCOME TAX toPUCl 9. One CC to SRI N.BHUJANGA RAO, DEPUTY SOLICITOR GENERIAL OF lNDIA, High Court for the State of Telangana at Hyderabad [OPUC] 10.Two CD Copies BSR TKS

2 DRAFTS HIGH COURT DATED: 0210912026 ORDER !.A.No.1 of 2026 IN WP.No.27407 o12024 ALLOWING THE I.A. & RECALLING THE ORDER OF W.P. ( ,. rJ o :i 14 t1 ,q -.\ ta\ 17SiP2025 'i .j o L) -+ .,-.^'.ti )::. !t '- . .,/ // t

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