MOHD NOORUL HUDA vs. The Income Tax Officer Ward 1(1)

WP/28867/2024HC TelanganaHBHC01056074202401 May 2025Bench: P.SAM KOSHY,NARSING RAO NANDIKONDA4 pages

AI SummaryPartly Allowed

What did the High Court hold?

The High Court allowed IA No. 1 of 2026 and recalled the earlier order dated May 1, 2025, in WP No. 28867 of 2024. The Court reasoned that the Supreme Court, by remitting all faceless assessment matters to the respective High Courts to consider the constitutional validity of Section 141-A of the Income Tax Act, 1961, had created a strong case for recalling the order. The principle is that when a higher court's decision fundamentally alters the basis upon which a lower court's order was made, and specifically directs re-adjudication or consideration of new grounds, the lower court should recall its earlier order to allow for such fresh adjudication. The operative direction was the recalling of the order, with no costs awarded.

What were the facts?

The Income Tax Department (Petitioners) filed an interim application (IA No. 1 of 2026) seeking to recall an order dated May 1, 2025, passed in Writ Petition No. 28867 of 2024. The original writ petition was filed by Mohd Noorul Huda (Respondent). The Department's request was based on a recent Supreme Court decision dated April 10, 2026, concerning faceless assessment proceedings. The Supreme Court had remitted matters to respective High Courts, allowing petitioners to question the constitutional validity of Section 141-A of the Income Tax Act, 1961. The High Court had previously disposed of the writ petition, granting liberty to parties to file a revival application subject to the outcome of Supreme Court matters.

What were the issues?

1. Whether the order dated May 1, 2025, in WP No. 28867 of 2024 should be recalled for fresh adjudication in light of the Supreme Court's order dated April 10, 2026. (Question of law and fact) The Petitioners (Income Tax Department) argued that the Supreme Court's decision in the faceless batch matters, which remitted cases to High Courts for considering the constitutional validity of Section 141-A of the Income Tax Act, 1961, necessitates the recalling of the earlier High Court order. They contended that the Supreme Court's directive provides a strong basis for re-examining the case. The Respondent (Mohd Noorul Huda) did not record any specific arguments against the recall application in the provided text. The judgment notes that the High Court had previously granted liberty to move a proper application for revival, subject to the outcome of Supreme Court matters.

Which sections of the Income-tax Act were involved?

Section 141-A

AI-generated summary — verify with the full judgment below

13447l IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) MONDAY, THE TWENTY FOURTH DAY OF AUGUST TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA lA.No.1 OF 2026 IN WRIT PETITION NO: 28867 OF 2024 Between: '1 . The Income Tax Officer Ward 1(1), Hyderabad, lT TOWER, AC Guards, Masab Tank, HYDERABAD, Telangana State. 2. The Principal Chief Commissioner of lncome Tax, Telangana and A.P, Hyderabad, lT Towers, AC Guards, Masab Tank, Hyderabad, Telangana, 500028 3. The Central Board of Direct Taxes Represented by its Chairman,, Department of Revenue, Ministry of Finance, Government of lndia, Secretariat Buildings, New Delhi, 1 1000'1 4. The National Faceless Assessment Center Income Tax, Department, New Delhi 5. The Union of lndia, Represented by its Secretary to the Government,, Department of Revenue, Ministry of Finance, New Delhi ...PETITIONERS AND IMOHD NOORUL HUDA, S/o. MOHD NAYEEM, Aged about 55 years, Occupation. Business, Rlo. 18-7-1981N1214/A IVURAD MAHAL, TALAB KATTA HYDERABAD 500053,Telangana, lndia. ...RESPONDENT Petition under Section 15'1 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 in WP No 28867 of 2024 for fresh adjudication considering the Order dated 10.04.2026 passed by the Horr'ble Supreme Court in lncome Tax Officer, Ward 2(1), Chandigarh & Ors. v --ej partap Singh and connected batch matters. Counsel for the Petitioners: Ms J. SUNITHA, SENIOR STANDING COUNSEL FOR INCOME TAX DEPARTMENT Counsel for the Respondent: SRl. THANNERU CHAITANY,A KUMAR The Court made the following: ORDER SD/- L. VIJAYA LAXMI AISSISTANT REGISTRAR //TRUE COPYII CTION OFFICER To, l.A.No.1 ol 2026 is filed by the respondenUlncc,me Tax Department seeking forthe recalling the order, dated 01.05.2025, in Wo.No.2g867 of 2024 in terms of recent decision of the Hon'ble Supreme court n the faceless batch which was decided on 10.04.2026, whereby the matters w,?re all remitted to the respective High courts, permitting the petitioners therein to question the constitutional validity of the provision under section 141-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 morre 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 ail those matters pending before the Hon'ble supreme court to the respective High Gourts. we are of the considered opinion that a strong ciase for recaling the order dated 01.05.2025 has also been made out. Accordingly, lA No.1 otioza stands allowed and the earlier order stands reca ed. --z 1 The lncome Tax Officer Ward 1(1), Hyderabad, I T TOWER, AC Guards, [\/asab Tank, HYDERABAD, Telangana State. The Principal Chief Commissioner of lncome Tax, Telangana and A.p, Hyderabad, lT Towers, AC Guards, Masab Tank, Hyderzrbad _5OO02B 2 ,\ ,J

The Chairman,, Department of Revenue, Ministry of Finance, Central Board of Direct Taxes, Government of lndia, Secretariat Buildings, New Delhi- 11000.1 4. The National Faceless Assessment Center lncome Tax, Department, New Delhi 5. The Secretary to the Government,, Department of Revenue, Ministry of Finance, Union of lndia, New Delhi, 6. The Section Officer, Posting Section, High Court for the State of Telangana, at Hyderabad. 7. The Section Officer, Writ Division Bench Section, High Court for the State of Telangana, at Hyderabad. 8. One CC to SRl. THANNERU CHATTANYA KU|VAR, Advocate tOpUCl 9 . One CC to [Vls J. SUNITHA, SENTOR STANDTNG COUNSEL FOR TNCOME TAX DEPARTMENT [OPUC] 10. Two CD Copies DAN PVL \*

HIGH COURT DATED: 2410812026 2 DRAFTS NOTE: List on 27.08.2026 alonq with batch ORDER Je lvo t otr ?-!!c fN/ WP.No.28867 of 2024 ALLOWING THE IA AND RECALLING THE WRIT PETITION WITHOUT COSTS .. I co$a'') ! 1t\E STAIf [ 1 sEi 2i2i q )oo v o5 r* '\ ?* \\-\-:: \r- rd tFt* * DsspAT

Recent GST High Court judgments

Search GST case law →