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

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WP/31101/2024HC TelanganaHBHC01060310202428 April 2025Bench: P.SAM KOSHY,NARSING RAO NANDIKONDA4 pages
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What did the High Court hold?

The High Court allowed I.A. No. 1 of 2026, thereby recalling the earlier order dated April 28, 2025, passed in Writ Petition No. 31101 of 2024. The Court reasoned that the Supreme Court, in its decision dated April 10, 2026, had remitted all pending faceless assessment matters to the respective High Courts, permitting petitioners to question the constitutional validity of Section 147A of the Income Tax Act, 1961. Given that the High Court had previously granted liberty to move for revival subject to the outcome of the Supreme Court matters, and the Supreme Court had indeed remitted these matters, a strong case for recalling the earlier order was made out. The operative direction is the recall of the previous order, allowing for fresh adjudication.

What were the facts?

The Income Tax Department (Petitioners) filed an interlocutory application (I.A. No. 1 of 2026) before the High Court of Telangana at Hyderabad seeking to recall an earlier order dated April 28, 2025, passed in Writ Petition No. 31101 of 2024. The recall was sought in light of a recent Supreme Court decision dated April 10, 2026, concerning faceless assessment proceedings. The Supreme Court had remitted such matters to the respective High Courts, allowing petitioners to question the constitutional validity of Section 147A of the Income Tax Act, 1961. The High Court had previously disposed of the writ petition with liberty to the parties to move for revival based on the outcome of the Supreme Court matters. The present application seeks to revive the writ petition for fresh adjudication.

What were the issues?

1. Whether the order dated April 28, 2025, in Writ Petition No. 31101 of 2024 should be recalled for fresh adjudication in light of the Supreme Court's decision in the faceless assessment batch matters. Assessee's Contention (Implicit): The assessee (Respondent) would likely support the recall of the order to allow for fresh adjudication based on the Supreme Court's directive, as previously granted liberty by the High Court. Revenue's Contention: The Revenue (Petitioners) contends that the Supreme Court's decision dated April 10, 2026, which remitted faceless assessment matters to High Courts for questioning the constitutional validity of Section 147A of the Income Tax Act, 1961, necessitates the recall of the earlier High Court order. They argue that the High Court had previously granted liberty to move for revival subject to the outcome of the Supreme Court matters, and the Supreme Court's decision provides the basis for such revival and fresh adjudication.

Which sections of the Income-tax Act were involved?

Section 147A

AI-generated summary — verify with the full judgment below

13447 | IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD 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 l.A.NO.1 0F 2026 IN WRIT PETITION NO: 31101 OF 2024 Between: 1. The lncome Tax Officer ward 1, Adilabad. 2. The Principal Chief Commissioner of lncome Tax, Telangana and A P Hyderabad lT Towers, AC Guards, Masab Tank, Hyderabad 3. The central Board of Direct Taxes, Represented by its chairman Department of Revenue Ministry of Finance Gorernment of lndia, Secretariat Buildings, New Delhi 110 001 4. The National Faceless Assessment Center' lncome Tax Department, New Delhi. 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 Limited, Rep. By CEO Mothi Srinivas, S/o. Rajamallu Mothi, Occupation. Business, Aged about 51 years, Rl/O. Talamadugu Talamadugu V , Adilbad ADILABAD 504001 Telangana. ...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 revive/recall the order dated 28.04.2025 in wP No 31 101 of 2024 for fresh adjudication 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.

This petition coming on for hearing, upon perusing the petition and Memorandum of Grounds filed in the support thereof and upon reading the Order daled 2810412025 in WP No.3'1 101 OF 2024 and upon hearing the arguments of M/S J. SUNITHA apcearing on behalf of the petitroners and SRI THANNERU CHAITANYA KUMAI?, appearing on behalf of the Respondents. The Court made the following: ORDER l.A.No.1 of 2t)26 is filed by the respondenUlncome Tax Department seeking for the recalling the order, dated 28.04.2025, in Wp.No.31.l01 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 matters 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, 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 move 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 facr: 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 recalling the order dated 28.04.2025 has also been made out. Accordingly, lA No.1 ot 2026 stands allowed and the earlier order stands recalled. SD/- P,C. SULEKHA DEVI ASSISTANT REGISTRAR //TRUE COPY// I ) To, 1. The lncome Tax Officer ward .1 , Adilabad SECTION OFFICER

TJ GJP 2. The Principal Chief Commissioner of lncome Tax, Telangana and A.P Hyderabad lT Towers AC Guards Masab Tank Hyderabad 3. The Chairman The Central Board of Direct Taxes, Department of Revenue Ministry of Finance Government of lndia Secretariat Buildings New Delhi 110 001 4. The National Faceless Assessment Center, lncome Tax Department, New Delhi. 5. The Secretary to the Government, The Union of lndia, Department of Revenue, lt4inistry of Finance, New Delhi - 110 001. 6. Primary Agricultural Co Operative Credit Society Limited, Rep. By CEO lr,4othi Srinivas, S/o. Rajamallu lv1othi, Occupation. Business, RyO. Talamadugu Talamadugu V , Adilbad ADILABAD 504001 Telangana. 7. One CC to Sri Thanneru Chaitanya Kumar, Advocate [OPUC] 8. One CC to Sri J. Sunitha (JUNIOR SC FOR INCOME TAX) [OPUC] 9. Two CD Copies 7

HIGH COURT DATED: 3110;812026 ORDER |.A.NO.1 0F '1026 IN WP.No.31101 of 2024 ALLOWING THE I.A. ll &Pi*' -l-? TWO DFRATS h-c S i.4l* C?. 2 4 StP2026 ( \l e i, () 1l-,-. ,. t.-('(.') I q\r6

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