PRIMARY AGRICULTURAL. CO OPERATIVE CREDIT SOCIETY LIMITED vs. The income tax officer

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WP/31077/2024HC TelanganaHBHC01060322202428 April 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, thereby reviving Writ Petition No. 31077 of 2024. The Court reasoned that the Supreme Court's decision dated 10.04.2026 in the 'faceless batch' of cases, which remitted all such matters to the respective High Courts for fresh adjudication and permitted petitioners to question the constitutional validity of Section 147-A of the Income Tax Act, directly addressed the condition under which the present writ petition was initially disposed of. Given that the Supreme Court itself has remitted these matters, the Court found a strong case for revival. The operative direction is the allowance of the IA, leading to the revival of the writ petition for further proceedings.

What were the facts?

The Income Tax Department (Petitioners) filed an interlocutory application (IA No. 1 of 2026) seeking to recall/revive Writ Petition No. 31077 of 2024. This writ petition was initially disposed of by the High Court, granting liberty to parties to move for revival subject to the outcome of matters pending before the Supreme Court concerning faceless proceedings. The Department's application is based on a Supreme Court decision dated 10.04.2026 in the 'faceless batch' of cases, which remitted matters to respective High Courts, allowing petitioners to question the constitutional validity of Section 147-A of the Income Tax Act. The respondent in the IA is the Primary Agricultural Co-operative Credit Society Limited.

What were the issues?

1. Whether the Writ Petition No. 31077 of 2024 should be revived for fresh adjudication in light of the Supreme Court's decision in the faceless batch of cases? Assessee (Respondent in IA): The assessee argues that the Supreme Court's decision in the faceless batch, which remitted matters to High Courts for considering the constitutional validity of Section 147-A, creates a strong case for reviving the present writ petition. They rely on the liberty granted by this Court at the time of initial disposal. Revenue (Petitioners in IA): The Revenue contends that the Supreme Court's order dated 10.04.2026, remitting all faceless batch matters to the respective High Courts for fresh adjudication, necessitates the revival of the present writ petition. They highlight that the initial disposal was made subject to the outcome of these Supreme Court proceedings.

Which sections of the Income-tax Act were involved?

Section 147-A

AI-generated summary — verify with the full judgment below

13447 | IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE FIRST 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: 1OF 2026 IN WRIT PETITION NO: 31077 OF 2024 Between 1. The lncome Tax Officer, Ward-1 , Adilabad 504001 2. The Principal Chief Commissioner of lncome Tax, Telangana and A.P, Hyderabad, lT Towers, AC Guards, Masab Tank, Hyderabad - 500028, 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 - 110 001 . 5. The Union of lndia, Represented by its Secretary to the Government, Department of Revenue, Ministry of Finance, New Delhi - 1 '10 001 . ...PETITIONERS AND PRIMARY AGRICULTURAL. CO OPERATIVE CREDIT SOCIETY LIN/ITED, Rep. By CEO IUOTHI SRINIVAS, S/o. RAJAMALLU MOTHI' Occupation. Business, Aged about 51 years Rl/o Talamadugu (V) Adilabad ...RESPONDENTS 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 recall/revive the order daled 28.04.2025 in WP No 31077 0l 2024 for fresh adjudicatlon considering 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 and connected batch matters

Counsel for the Petitioners: Ms. J. SUNITHA (SENIOR SC FOR INCOME TAX) Counsel for the Respondents: SRl. THANNERU CHAITANYA KUMAR The Court made the following: ORDER lA No.l of 2026 is filed by the respondenUlncome Tax Department seeking for the restoration of present Writ Petition No.31077 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 mafters were all remitted to the respective High Courts, permitting the petitioners therein to question the Constitutional validity of the provision under Section 147-A of lncome Tax Act. 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 Coud 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 revival of the present writ petition has also been made out. Accordingly, lA No.l of 2026 stands allowed. SD/. L.VIJAYA LAXMI ASSISTANT REGISTRAR //TRUE COPY// lr \ i\ l To, \ SECTION OFFICER 1 . The lncome tax Officer, ward 1 , Adilabad, Hyderabad, 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 Chairman, Central Board of Direct Taxes, Department of Revenue, lvlinistry of Finance, Government of lndia, Secretariat Buildings, New Delhi - 110001. 5. The Secretary to the Government, Union of lndia, Department of Revenue, Ministry of Finance, New Delhi - 1'10 001 . 6. The Section Officer, Writ Division Bench, Section High Court for the State of Telangana, Hyderabad 7. The Section Officer, Posting Section , High Court for the State of Telangana , Hyderabad B. One CC to SRl. THANNERU CHAITANYA KUIVAR, Advocate [OPUC] 9. One CC to Ms. J SUNITHA (Sr. SC FOR INCOME TAX) [OPUC] 10.Two CD Copies Bm TKS Y{

HIGH COURT DATED: 0'110912026 ORDER IA.NO. 1 0F 2026 IN WP.No.31077 of 2024 I.A. IS ALLOWED HE SIA T€. 1 q i o 72 6') .L i0StP ffi * * l^ c FA es D I p- oed t\a{ dr,u

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