Primary Agricultural Cooperative Society Limited. vs. The Income Tax Officer Ward-1

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WP/31380/2024HC TelanganaHBHC01060819202401 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). The Court held that a strong case had been made out for recalling the order dated 01.05.2025. This decision was based on the fact that the Hon'ble Supreme Court itself had remitted all matters pertaining to faceless proceedings to the respective High Courts. The Supreme Court's order permitted petitioners to question the constitutional validity of Section 147-A of the Income Tax Act, 1961. Consequently, the earlier order of the High Court stands recalled, paving the way for fresh adjudication in light of the Supreme Court's pronouncement. The Court did not explicitly leave any issue undecided; the sole purpose of the I.A. was to recall the previous order.

What were the facts?

This case involves an interlocutory application (I.A. No. 1 of 2026) filed by the Income Tax Department (Petitioner) in Writ Petition No. 31380 of 2024. The Department sought to recall an order dated 01.05.2025, previously passed by the High Court. The recall was requested in light of a recent Supreme Court decision dated 10.04.2026 concerning faceless proceedings. The High Court had initially granted liberty to the parties to move for revival of the writ petition, subject to the outcome of the Supreme Court matters. The Supreme Court's decision remitted matters related to faceless proceedings back to the respective High Courts, allowing petitioners to challenge the constitutional validity of Section 147-A of the Income Tax Act, 1961.

What were the issues?

1. Whether the High Court should recall its earlier order dated 01.05.2025 in Writ Petition No. 31380 of 2024, considering the Supreme Court's decision dated 10.04.2026 in the faceless batch matters? Assessee (Respondent): The assessee, Primary Agricultural Cooperative Society Limited, did not file any arguments in the I.A. seeking recall. Revenue (Petitioner): The Revenue argued that the Supreme Court's decision in the faceless batch matters, which remitted cases to High Courts for adjudication on the constitutional validity of Section 147-A of the Income Tax Act, 1961, necessitates the recalling of the High Court's earlier order. This would allow for fresh adjudication in light of the Supreme Court's directive.

Which sections of the Income-tax Act were involved?

Section 147-A

AI-generated summary — verify with the full judgment below

t34/-71 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) MONDAY, THE TWENTY FOURTH 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: 31380 OF 2024 Between: 1 . The lncome Tax Officer Ward-1 , Sangareddy lncome Tax Office, Veerabhadra Nagar, New Bus Stand, Veerabhadra Nagar, Sangareddy Telangana. 2. The Principal Chief Commissioner of lncome Tax - Telangana and A.P., Hyderabad, lT Towers, AC Guards, Masab Tank, Hyderabad - 500028, Telangana. 3. 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 . 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 . .....PETITIONER AND Primary Agricultural cooperative society Limited., Rep. by the Secretary Ed.uri Ramesh S/o. pindiri Eduri, Aged about 39 years, Occupation. Business, Rt/o. H.No. 1-1 1/1416 Kangti, Sangareddy 502286, Telangana, lndia. .....RES,ONDENT Petition under section 1 51 CPC praying that in the circumstances stated in the affidavit fited in support of the petition, the High Court may be pleased to revive/recall the order dated o'1 .05.2025 in W.P.No.31380 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 mafters. Counsel for the Petitioner : Ms. J.SUNITHA, SENIOR STANDTNG COUNSEL FOR THE INCOME TAX DEPARTMENT Counsel for the Respondent : SRI THANNERU CHAITANYA KUMAR The Court made the following ORDER l.A.No.1 of 2026 is filed by the respondent / lncome Tax Department seeking for the recalling the order, dated 01-5-2025, in W.p.No.313BO of 2024 in terms of recent decision of the Hon'ble Supreme Court ir the faceless batch which was decided on 10-4-2026, whereby the matters we,e 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 petitior 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 courts. 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.1 of 2026 stands allowed and the earlier order stands recalled. SD/.M.OSMAN ALI BAIG ASSISTANT REGISTRAR //TRUE COPY// 0 To SECTION OFFICER 1 The lncome Tax Officer Ward-'|, Sangareddy lncome Tax Office, Veerabhadra Nagar, New Bus Stand, Veerabhadra Nagar, Sangareddy Telangana.

SA 2. The Principal Chief Commissioner of lncome Tax - Telangana and A.P., Hyderabad, lT Towers, AC Guards, tt/asab Tank, Hyderabad - 500028, Telangana. 3. The Chairman, Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Government of lndia, Secretariat Buildings, New Delhi -110001. 4. The National Faceless Assessment Center, lncome Tax Department, New Delhi. 5. The Secretary to the Government, Union of lndia, Department of Revenue, Ministry of Finance, New Delhi - 110 001. 6. The Section Officer, D.B - ll Section, High Court for the State of Telangana at Hyderabad. 7. The Section Officer, Posting Section, High Court for the State of Telangana at Hyderabad. 8. One CC to SRI THANNERU CHAITANYA KUMAR, Advocate [OPUC] 9. One CC to Ms. J.SUNITHA, SENIOR STANDING COUNSEL FOR THE INCOME TAX DEPARTMENT (OPUC) 10.One CC to SRI N.BHUJANGA RAO, DEPUry SOLICITOR GENERAL OF lNDlA, Advocate [OPUC] 1'1 .Two CD Copies Vk PVL

HIGH COURT DATED: 2410812026 List on 27 -8-2026 aloins with batch ORDER l.A.No.1 OF 2026 IN WP.No.31380 ot 2024 ALLOWING THE I.A s. 1 flE sIA to 3 o1stP2cz6 x z 6) t * I )r-<- .VtTCH * \? ".S4 \a ;^Tur"

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