PRIMARY AGRICULTURAL COOPERATIVE CREDIT SOCIETY LIMITED GOLLAPALLY, vs. The Income Tax Officer

PDF · subscribers
WP/31364/2024HC TelanganaHBHC01060829202401 May 2025Bench: P.SAM KOSHY,NARSING RAO NANDIKONDA4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court allowed the interlocutory application (I.A. No. 1 of 2026) and recalled its earlier order dated 01.05.2025 passed in W.P. No. 31364 of 2024. The Court reasoned that since the Supreme Court itself had remitted all matters pertaining to faceless proceedings to the respective High Courts, permitting them to question the constitutional validity of Section 147-A of the Income Tax Act, 1961, a strong case was made out for recalling the order. The ratio decidendi is that when a higher court's judgment fundamentally alters the procedural landscape or legal basis for pending matters, lower courts should facilitate fresh adjudication in line with the higher court's directions. The operative direction was the recalling of the previous order, paving the way for fresh adjudication.

What were the facts?

The Income Tax Department (Petitioners) filed an interlocutory application (I.A. No. 1 of 2026) seeking to recall an order dated 01.05.2025 passed in Writ Petition No. 31364 of 2024. The original writ petition was filed by the Primary Agricultural Cooperative Credit Society Limited, Gollapally (Respondent). The Department's request for recalling the order was based on a recent Supreme Court decision dated 10.04.2026 in Income Tax Officer, Ward 2(1), Chandigarh & Ors. v. Tej Pratap Singh and connected matters. This Supreme Court judgment, concerning faceless proceedings, remitted matters to respective High Courts, allowing petitioners to question the constitutional validity of Section 147-A of the Income Tax Act, 1961. The High Court had previously granted liberty to either party to move for revival of the writ petition, subject to the outcome of the Supreme Court's decisions on faceless proceedings.

What were the issues?

1. Whether the order dated 01.05.2025 in W.P. No. 31364 of 2024 should be recalled for fresh adjudication in light of the Supreme Court's decision in the faceless proceedings batch. Assessee's Contention (Respondent): The assessee did not explicitly present arguments in this interlocutory application. However, the original writ petition likely concerned issues related to faceless proceedings and potentially the constitutional validity of Section 147-A of the Income Tax Act, 1961, as indicated by the Supreme Court's subsequent order. Revenue's Contention (Petitioners): The Revenue contended that the Supreme Court's decision dated 10.04.2026 in the faceless batch matters, which remitted cases to High Courts for fresh adjudication on the constitutional validity of Section 147-A of the Income Tax Act, 1961, necessitates the recalling of the earlier High Court order. They relied on the Supreme Court's direction to allow petitioners to question the constitutional validity of the said provision.

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) MONDAY, THE THIRTY FIRST DAY OF AUGUST TWO THOUSAND AND TWENW SIX PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA I.A.NO: 1 OF 2026 IN WRIT PETITION NO:3'1364 OF 2024 Between: 1. The lncome Tax Officer, ward 1, Sangareddy lncome Tax ffice, Veerabhadra Nagar, New Bus Stand, Veerabhadra Nagar, Sangareddy, Telangana-502001 Telangana State. 2. The Principal Chief Commission6r 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 Cenkal Board of Direct Taxes, Represented by its Chairman, Department of Revenue, Ministry of Finance, Government of India, Secretariat Buildings' New Delhi - 'l 10 001 . 5. The Union of lndia,, Represented by its Secretary to the Government, Department of Revenue, Ministry of Finance, New Delhi - 110001 . .....PETITIONERS AND PRIMARY AGRICULTURAL COOPERATIVE CREDIT SOCIETY LIMITED GOLLAPALLY, Rep. by Secretary MANNE RAJASHEKAR, S/o. PANDAIAH MANNE' Occupation. Business, Aged about 4l years, RlO. Door No 4 85 Gollapally Village , Kondapur Mandal, Medak 502295. Telangana, lndia. .....RES'ONDENTS 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 01 .05.2025 in wP No 31364 ot 2024 for fresh adjudication considering

the order dated '10.04 2026 passed by the Hon'ble supreme court in lncome Tax fficer, Ward 2(1), Chandigarh & Ors. v. Tej partap Singh and connected batch matters. Counsel for the Petitioners : Ms. J.SUNITHA, LEARNED SENIOR STANDTNG COUNSEL FOR THE INCOME TAX DEPARMENT Counsel for the Respondent : SRI THANNERU CHAITANYA KUMAR The Court made the following ORDER I'A.No.1 ol 2026 is filed by the respondenurncome Tax Department seeking for the recalling the order, dated 0't-05-2025, in w.p.No.31364 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-Aot lncome Tax Act 196i. 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 fact that the Hon'ble Supreme court has itself remitted all those matters pending before the Hon'ble Supreme court to the respective High Gourts. we are of the considered opinion that a strong case for recalling the order dated 01-05-2025 has also been made out. Accordingly, l.A.No.l of 2026 stands allowed and the earlier order stands recalled. SD/. L.VIJAYA LAXMI ASSISTANT REGISTRAR //TRUE COPY// 1'o SECTION OFFICER The lncome Tax Officer, ward .1 , Sangareddy lncome Tax ffice, Veerabhadra Nagar, New Bus Stand, Veerabhad'ra Nagar, Sangareddy, Telangana-502001 Telangana State. The Principal Chief Commissioner of lncome Tax Telangana and A.p,, Hyderabad, tT Towers. AC Guards, Masab Tank, UyAeiOaO 5OO Ord; Telangana. 1 2

F'.-7 SA 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 Secretary to Government, Union of lndia, Department of Revenue, Ministry of Finance, New Delhi - 1 1000'l . 6. The Section Officer, Posting Section, High Court for the State of Telangana at Hyderabad. 7. The Section fficer, D.B. Section, High Court for the State of Telangana at Hyderabad. 8. One CC to SRI THANNERU CHATTANYA KUMAR, Advocate IOPUCI 9. One CC to Ms. J.SUNITHA, LEARNED SENTOR STANDTNG COUNSEL FOR THE INCOME TAX DEPARMENT, Advocate [OPUC] 10.One CC to SRI N.BHUJANGA RAO, DEPUTY SOLIC|TOR GENERAL OF rNDrA (OPUC) 11. Two CD Copies Yi, TKS

HIGH COURT DATED: 3110812026 ORDER |.A.NO.1 0F 2026 IN WP.NO.31364 0F 2024 ALLOWING THE I.A. \ TA 5 E r1 1 S P L 1 1 o. o LJ i? -;:- 2026 11i" .+ * oFs ','**

More judgments on Section 147-A

All 43 judgments and leading authorities on Section 147-A →

Recent GST High Court judgments

Search GST case law →