PRIMARY AGRICULTURAL CO OPERATIVE SOCIETY LIMITED BOATH vs. The income tax officer ward 1

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WP/31057/2024HC TelanganaHBHC01060288202428 April 2025Bench: P.SAM KOSHY,NARSING RAO NANDIKONDA4 pages
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What did the High Court hold?

The High Court, in its order dated August 31, 2026, has granted an interim stay of the impugned order. The Court noted that the matter is to be listed along with a batch of similar cases. The interim stay is granted in light of an order passed by the Hon'ble Supreme Court in Diary No. 2196 of 2026, decided on April 10, 2026. The operative direction is to provide an interim stay of the impugned order. The Court has not decided on the merits of the writ petition itself, but has provided interim relief pending further adjudication.

What were the facts?

The petitioner, Primary Agricultural Co Operative Society Limited Boath, represented by its CEO, filed a writ petition before the High Court for the State of Telangana at Hyderabad. The petition challenges an order passed by the Income Tax authorities (National Faceless E-Assessment Centre) on March 11, 2024. This order, passed under Section 147 read with Section 144 and Section 144B of the Income Tax Act, 1961, pertains to the Assessment Year 2019-20 and determines the total income at Rs. 1,73,45,683/-. The petitioner seeks to declare this order arbitrary, illegal, without jurisdiction, and violative of natural justice and constitutional provisions. The petitioner also filed an application for an interim stay of the impugned order and the demand notice issued under Section 156 of the Income Tax Act, 1961, pending the disposal of the writ petition.

What were the issues?

1. Whether the order passed by the Income Tax authorities (National Faceless E-Assessment Centre) under Section 147 read with Section 144 and Section 144B of the Income Tax Act, 1961, for the Assessment Year 2019-20, determining the total income at Rs. 1,73,45,683/-, is arbitrary, illegal, without jurisdiction, void-ab-initio, and violative of the principles of natural justice, Articles 14, 19(1)(g), and 265 of the Constitution of India, and Section 148A of the Income Tax Act, 1961. Assessee's Contention: The petitioner argues that the assessment order is arbitrary, illegal, bad in law, without jurisdiction, void-ab-initio, and violative of the principles of natural justice, Articles 14, 19(1)(g), and 265 of the Constitution of India, and Section 148A of the Income Tax Act, 1961. Revenue's Contention: The judgment does not record any specific arguments from the revenue side regarding the merits of the case at this stage. The revenue is represented by Ms. J. Sunitha, Sr. SC for IT.

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 144B,Section 148A,Section 156

AI-generated summary — verify with the full judgment below

13447 | IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) IVONDAY, 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: 31057 OF 2024 Between: PRIMARY AGRICULTURAL CO OPERATIVE SOCIETY LIMITED BOATH, Rep. By CEO GOOLI SWAMY, S/o. USHNNA GOOLI, Occupation. Business, Aged about 46 years. RlO. Boath Adilabad Dist , ADILABAD ADILABAD 50500'1 , Telangana, lndia. ...PETITIONER AND 1 ) The lncome Tax Officer Ward- 1 , Nirmal, lncome Tax Office, Nirmal-504106, 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 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 - 1 10 001 . ...RESPONDENTS Petition under Nlicle 226 of the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue an appropriate writ, order or direction more particularly one in the nature of Writ of Mandamus declaring the order passed by the lncome tax authorities (National Faceless E-Assessment Centre) completed the assessmenl UIS 147 r.w.s '144 read with section 1448 of the lncometax Act Date of

1j-03-2024,DINITBA/AST/S/14712023-2411062372430(1) for the Assessment Year 2o1g-2o determining the total income of Rs.1,73,45,683/- as arbitrary, illegal, bad in 1sr/y, without jurisdiction, void-ab-inltio, violative of the principles of natural justice apa7. f rcm being violative of Articles 1a, 19(1Xg) and 265 of the Constitution of lndia and Sec 148A of the lncome Tax Act, 196'l , and consequently set aside the same. A. NO:1O F 2024 t. Petrtion under Section 151 CPC praying that in the circlmstances stated in the u11i6avti f iled in suppon of the petition. the High Court may be pleased to suspend the order Under section 147 r.w.s 144 rcad with section 1448 of the lncometax Act Date of 11-03-2024, DINITBA/AST/5114712023-2411O6237243O(t) for the Assessment Year 2019-20 determining the total income of Rs.1 ,73,45,6831 and Demand notice u1s 156 of the lncome Tax act 1961, vide DIN & Notice No. tTBA/AsT/s/1 5612023-2411062372503(1) Dl. 11-03-2024 for the assessment year . 2O1g-20 pending disposal of the above Writ Petition. Counsel for the Petitioner: SRI THANNERU CHAITANYA KUMAR Counsel for the Respondents: Ms. J.SUNITHA, Sr. SC FOR lT 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 of 2026 and bath decided on 10.04.2026. SD/. A.JAYASREE ASS STANT REGISTRAR //TRUE COPY// ECTION OFFICER 'f o, The lncome Tax Officer Ward-i, Nirmal Telangana 51r," lncome Tax Off ce, Nirmal-504106,

2 The Principal Chief Commissioner of lncome Tax Hyderabad, lT Towers, AC Guards, Masab Tank, Telangana. -Telangana Hyderabad - and A.P, 500 028, 3. The National Faceress Assessment center, rncome Tax Department, New Delhi. 4. The chairman, centrar Board of Direct raxes, Department of Revenue, Ministry of Finance, Government of rndia, secretariat Buirdings, New Derhi - 1 1o 001. 5. The Secretary to the Government, Department of Revenue, Ministry of Finance, New Delhi, Union of lndia - 1 10 00i . 6. The section officer, writ posting section, High court for the State of rerangana at Hyderabad. 7. The section officer, writ DB section, High court for the state of rerangana at Hyderabad. 8 One CC to SRt THANNERU CHA|TANYA KU|VAR, Advocare tOpUCl 9. One CC to Ms. J.SUN|THA, Sr. SC FOR tT [OPUC] 'l0.Two CD Copies BSR TKS qr

HIGH COURT DATED: 3110812026 ORDER WP.No.31057 of 2024 INTERIM STAY t 2 DRAFTS 1 HE SI4 1 0 sEP 2026 Pzo D oU * 84. \ri \a*f$ .&"

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