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

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WP/27541/2024HC TelanganaHBHC01053191202425 April 2025Bench: P.SAM KOSHY,NARSING RAO NANDIKONDA4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court allowed I.A. No. 1 of 2026, thereby recalling its earlier order dated April 25, 2025, passed in Writ Petition No. 27541 of 2024. The Court reasoned that the Supreme Court, in its decision dated April 10, 2026, had remitted all matters pertaining to 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 this development and the liberty previously granted by this Court to move for revival, a strong case was made out for recalling the order. The operative direction is the recall of the previous order, allowing for fresh adjudication in light of the Supreme Court's pronouncement. No issue was expressly left undecided.

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 April 25, 2025, passed in Writ Petition No. 27541 of 2024. The original writ petition was filed by the Primary Agricultural Cooperative Society Kallurgudem (Respondent). The Department's request is based on a recent Supreme Court decision dated April 10, 2026, in a batch of cases concerning faceless proceedings. The Supreme Court had remitted these 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 move for revival of the writ petition, subject to the outcome of the Supreme Court matters. The assessment year in question is 2018-19.

What were the issues?

1. Whether the order dated April 25, 2025, passed in Writ Petition No. 27541 of 2024 should be recalled in light of the Supreme Court's decision dated April 10, 2026, concerning faceless proceedings and the remittal of such matters to High Courts for fresh adjudication on the constitutional validity of Section 147-A of the Income Tax Act, 1961? The Revenue (Petitioners) argued that the Supreme Court's decision necessitates the recalling of the earlier order to allow for fresh adjudication, particularly concerning the constitutional validity of Section 147-A. They relied on the Supreme Court's directive to remit matters to High Courts. The Assessee (Respondent) did not record any specific arguments against the recall in the provided text, but the initial writ petition would have likely contested the assessment proceedings.

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) WEDNESDAY, THE NINTH 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 of 2026 IN WRIT PETITION NO: 27541 OF 2024 Between: AND 1. The income tax officer ward 1, Khammam/ lncome Tax Office, Rajeev Gunt, Rajiv Chowk, Near Kinnerasani Theatre, Khammam Telangana State. 2. The Principal Chief Commissiorier 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 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 KALLURGUDEM' Rep. By lts Secretary Naroju Chandra Sekhar, S/o.NarojuVeerachary, Occupation. Business Aged about 32years, Fl/O. Main Road Kusumanchi , At Kusumanchi Po Kusumanchi Khammam 507159, Telangana, lndia' PAN' AACAP0035B Assessment Year. 201 B-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 daled 25.04.2025 passed in w.P. No. 2754112024 for fresh adjudication in

light of the Order dated 10.04.2026 passed by 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 Respondent: SRI THANNERU CHAITANYA KUMAR The Court made the following: ORDER l.A.No.1 oi 2(126 is filed by the respondenUlncome Tax Department seeking for the recalling the order, dated 25.04.2025, in WP.No.27541 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 ol 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 25.04.2025 has also been made out. Accordingly, lA No.1 of 2026 stands allowed and the earlier order stands recalled. SD/.P.PONNA KRISHNA ASSISTANT EGISTRAR //TRUE COPYi/ SE.CTION OFFICER To, 1. The lncome Tax Officer Ward 1, Khammam/ Income Tax Office, Rajeev Gunt, Rajiv Chowk, Near Kinnerasani Theatre, Khammam Telangana State. 2. The Principal Chief 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 Chairman, Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Government of lndia, Secretariat Buildings, New Delhi - 110 001. 5. The Secretary to the Government, Department of Revenue, Ministry of Finance, New Delhi, Union of lndia - 1 10 001 6. The Secretary, Naroju Chandra Sekhar, S/o. NarojuVeerachary, Primary Agricultural Cooperative Society Kallurgudem, Rl/o. Main Road Kusumanchi, At Kusumanchi Po Kusumanchi, Khammam-507159, Telangana, lndia- T One CC to SRI THANNERU CHAITANYA KUMAR, Advocate [OPUC] 8. One CC to SRI KAMASANI SUDHAKAR REDDY, ST. SC FOR IT [OPUC] 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 ?u

HIGH COURT' DATED: 09/09/2026 ORDER l.A.No.1 of 2426 IN WP.No.27541 of 2024 ALLOWING THE I.A. & RECALLING THE ORDER OF W.P. z .I,e q Dou 2 DRAFTS 1r{E STArt 21SEPM D6SFATC 4; * * ljdprc: 1? --,6ffi

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