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

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WP/27678/2024HC TelanganaHBHC01053939202430 April 2025Bench: P.SAM KOSHY,NARSING RAO NANDIKONDA3 pages
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What did the High Court hold?

The High Court, in its interim order, granted a stay on the impugned order and notice. This decision was made in light of an order passed by the Hon'ble Supreme Court in Diary No. 2196 of 2026 and batch, decided on April 10, 2026. The High Court directed that there shall be an interim stay of the impugned order. The court listed the writ petition along with a batch of similar cases. No final decision on the merits of the case was made; the order pertains solely to the grant of interim relief.

What were the facts?

The petitioner, Primary Agricultural Cooperative Credit Society Yedulapuram, filed a writ petition before the High Court of Telangana at Hyderabad. The petition challenges an order passed by the Income Tax Officer under Section 148A(d) of the Income Tax Act, 1961, dated April 5, 2023, and a notice issued under Section 148 of the Act, also dated April 5, 2023, for the assessment year 2019-20. The petitioner contends that these orders are illegal, arbitrary, and passed in gross violation of the principles of natural justice without application of mind. The petitioner seeks to set aside these orders and notices. An interim stay application was also filed seeking to suspend the operation of the impugned notice and consequential proceedings.

What were the issues?

1. Whether the order passed by the Income Tax Officer under Section 148A(d) of the Income Tax Act, 1961, and the notice issued under Section 148 of the Act for the assessment year 2019-20 are illegal, arbitrary, and violative of the principles of natural justice, as contended by the petitioner? Assessee's Contention: The petitioner argues that the impugned order and notice were passed without proper application of mind and in violation of natural justice principles. They seek to have these set aside. Revenue's Contention: The judgment does not record any specific contentions from the revenue at this stage. The matter was listed along with a batch of cases, and an interim stay was granted.

Which sections of the Income-tax Act were involved?

Section 148A,Section 148

AI-generated summary — verify with the full judgment below

13447 1 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) MONDAY, THE THIRTY FIRST DAY OF AUGUST TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA WRIT PETITION NO: 27678 OF 2024 Between: Primary Agricultural Cooperative Credit Society Yedulapuram, 1-131, Naidupeta, Gandhichow, Khammam - 507003. Rep. , by its Secretary, Mr. Mohammad Mahamood Ali, S/o. Mr. Zamin Ali. ......PETITIONER AND 1. The lncome Tax Officer, Ward -1 , lncome Tax Office, Rajeev Gunt, Rajiv Chowk, Near Kinnerasani Theatre, Khammam - 507001. 2. Assessment Unit, National Faceless Assessment Centre, lncome Tax Department, Ministry of Finance, Room No. 401,2nd Floor, E- Ramp, Jawaharlal Nehru Stadium, Delhi -1 10 003. .....RESPONDENTS Petition Under Anicle 226 of the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to pass an order or direction, especially one in the nature of WRIT OF MANDAMUS holding that the order passed by is Respondent u/s. 148A(d) of the Act, dt. 05 04. 2023 with DIN and Notice No ITBA/AST/F1148N2023- 2411051868554(1) and the notice dated 05. 04. 2023 issued under section 148 of the Act with DIN and Notice No ITBA/AST/S/148112023- 2411051876005(1)forthe assessment year2Ol9- 20, as being illegal, arbitrary and passed in gross violation of principles of natural justice without application of mind, and consequently set aside the same.

l.A.NO:1 OF 2024 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 suspend the operation of the notice issued by the 1st Respondent u/s. 148 of the Act, dt. 05. 04. 2023 for the arisessment yeat 2019- 20 with DIN and Notice No ITBA/AST/S/148_112C23- 2411051876005(1 ) and all consequential proceedings thereto. Counsel for the Petitioner : SRI A.V.RAGHU RAM Counsel for the Respondents : SRI K.SUDHAKAR REDDY, LEARNED SENIOR STANDING COUNSEL FOR INCOME TAX The Court made the following ORDER List along with batch. Meanwhile, tlrere shall be interim stay of the impugned order, in the light of the order granted bv the Hon'ble Supreme Court vide its order in Diary No.2196 of 2O26 and batch decided on 10-4-2026. SD/. G. ESWAR ASSISTANT REGISTRAR //TRUE COPY// To SA 6 SECTION OFFICER '1 . The lncome Tax Officer, Ward -1, lncome Tax Office, Rajeev Gunt, Rajiv Chowk, Near Kinnerasani Theatre, Khammam - 507001. 2. The Assessment Unit, National Faceless Assessment Centre, lncome Tax Department, Iv inistry of Finance, Room No. 401,2nd Floor, E- Ramp, Jawaharlal Nehru Stadiunr, Delhi -1 10 003. 3. The Section Crfficer, Posting Section, High Court for the State of Telangana at Hyderabad. 4. The Section Officer, D.B. Section, High Court for the State of Telangana at Hyderabad. 5. One CC to SR A.V.RAGHU RAM, Advocate [OPUC] 6. One CC to SRI K.SUDHAKAR REDDY, LEARNED SENTOR STANDTNG COUNSEL FOR INCOME TAX, Advocate [OPUC] 7. Two CD Copies GJP

HIGH COUR]' DATED: 3110812026 ORDER WP.No.2767tl ot 2024 INTERIM STAY. rn Cog\s 1-? .../. STArg ila li stP 26 t.) L", L., ? J5 * ?\\och6

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