The Primary Agricultural Cooperative Credit Society vs. Assessment Unit

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WP/30201/2024HC TelanganaHBHC01057734202402 May 2025Bench: P.SAM KOSHY,NARSING RAO NANDIKONDA3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court, in its order dated 07.09.2026, did not decide the merits of the case. Instead, it directed that the writ petition be listed along with a batch of similar cases. Crucially, the Court granted an interim stay of the impugned order. This interim relief was granted in light of an order passed by the Hon'ble Supreme Court in a batch of cases (Diary No. 2196 of 2026 and batch) decided on 10.04.2026. The High Court's order is procedural, deferring a final decision on the validity of the Section 148 notice and the subsequent assessment and penalty orders until the batch of cases is heard. No specific finding was made on any of the issues raised by the petitioner, other than the grant of interim relief.

What were the facts?

The petitioner, Sri Peddamukkula Venkateswarlu Primary Agricultural Cooperative Credit Society, filed a writ petition before the High Court for the State of Telangana at Hyderabad. The petition challenged a notice dated 07.04.2022 issued by the Income Tax Officer under Section 148 of the Income Tax Act, 1961. The petitioner also sought to set aside assessment and penalty orders passed by the Assessment Unit, National Faceless Assessment Centre for assessment year 2018-19 under Section 147 read with Section 144B and under Section 270A of the Act, respectively. The petitioner contended that the notice under Section 148 was without jurisdiction, arbitrary, illegal, bad in law, void ab initio, and violative of Sections 14BA, 149, and 151A of the Act, and contrary to CBDT circulars. The High Court, in its order dated 07.09.2026, listed the petition along with a batch of similar cases and granted an interim stay of the impugned order, referencing a Supreme Court order.

What were the issues?

1. Whether the notice dated 07.04.2022 issued by the Income Tax Officer under Section 148 of the Income Tax Act, 1961, is without jurisdiction, arbitrary, illegal, bad in law, void ab initio, and violative of Sections 14BA, 149, and 151A of the Act, and contrary to CBDT circulars. Assessee's Contentions: The assessee argued that the Section 148 notice was invalid on multiple grounds, including jurisdictional defects, arbitrariness, illegality, and violation of specific statutory provisions (Sections 14BA, 149, 151A) and administrative instructions (CBDT circulars). The assessee sought to quash this notice and consequential assessment and penalty orders. Revenue's Contentions: The judgment does not record any specific contentions made by 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 148,Section 147,Section 144B,Section 270A,Section 14BA,Section 149,Section 151A

AI-generated summary — verify with the full judgment below

Between: The Primary Agricultural Cooperative Gopavaram, Khammam - 507305. ReP., Venkateswarlu, S/o. Sri P. Venkaiah 134471 Society, Gopavaram, 4-5311, Secretary, Sri Peddamukkula IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) MONDAY, THE SEVENTH DAY OF SEPTEIUBER TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA WRIT PETITION NO: 3020't OF 2024 Credit by its ...PETITIONER AND '1 . 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. 2. The lncome Tax Officer, Ward - 'l , lncome Tax Office, Rajeev Gunt, Rajiv Chowk, Near Kinnerasani Theatre, Khammam - 507001. ...RESPONDENTS Petition under Article 226 of lhe 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 notice dated 07.04.2022 issued by 2nd Respondent under section '148 of the Act (with DIN and Notice No.ITBtuAST/S/148 112022-2311042604165(1)) as being without jurisdiction, arbitrary, illegal, bad in law, void ab initio, apart from being violative of provisions of section 14BA and section 149 of the Act and also contrary to the circular issued by GBDT and provisions of section 151A of the Act, and consequently set aside the notice under section 148 dated 07 .04.2022 and the assessment and penatty orders passed by 1St Respondent for asst. year 2018-19 under section 147 r.w.s 1448 and u/s.270A of the Act, respectively.

Counsel for the Petitioner: SRI A.V.RAGHU RAM Counsel for the Respondents: SRI K.SUDHAKAR REDDY, SR. SC FOR INCOME TAX The Court made the following: ORDER List along with batch. Meanwhile, there shall be interim stay of the impugned order, in the light of the order granted by the Hon'ble Supreme Court vide its order in Diary No.2196 of2026 and batch decided on 10.04.2026. SD/. B.REKHA RANI ASSISTANT REGISTRAR //TRUE COPY// € To PSK TKS SECTION OFFICER 1. Assessment Unit National Faceless Assessment Centre, lncome Tax Department, t!4inistry of Finance, Room No. 4a1 , 2nd Floor, E-Ramp, Jawaharlal Nehru Stadium. Delhi -1 10 003. 2. The lncome Tax Officer, Ward - 1, lncome Tax Offir:6, p21ss, Gunt, Rajiv Chowk, Near Kinnerasani Theatre, Khammam - 507001. 3. The Secrelary, Sri Peddamukkula Venkateswarlu, S/o. Sri P. Venkaiah, Primary Agricultural Cooperative Credit Society, Gopavaram, 4-5311, Gopavaram, Khammam - 507305. 4. The Section Office, Writ Division Bench Section, High Court for the State of Telangana, at Hyd erabad. 5. The Sectron Office. Posting Section, High Court for the State of Telangana, at Hyderabad 6. One CC to SRI A V RAGHU RAI\,4, Advocate IOPUC] 7 One CC to SRI K SUDHAKAR REDDY, Sr SC FOR IN,IOIVE TAX IOPUC] 8 Two CD Copies {.9,

HIGH COURT DATED: 0710912026 2 DRAFTS NOTE: LIST ALONG WITH BATCH ORDER WP.No.30201 of 2024 DIRECTION 1 7 SEP ;?026 i .:':':': 1 ,t- ';:; :_,: ra:i t + rA /" ) a)o ,'"

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