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

WP/31417/2024HC TelanganaHBHC01060943202401 May 2025Bench: P.SAM KOSHY,NARSING RAO NANDIKONDA4 pages

AI SummaryPartly Allowed

What did the High Court hold?

The High Court allowed I.A.No.1 of 2026, thereby recalling its earlier order dated 01.05.2025. The Court reasoned that the Supreme Court, in its decision dated 10.04.2026 concerning faceless proceedings, had remitted similar matters to the respective High Courts. This remittance specifically permitted petitioners to question the constitutional validity of Section 141-A of the Income Tax Act. Given that the High Court had previously granted liberty to the parties to move for revival subject to the Supreme Court's outcome, and the Supreme Court had indeed remitted such matters, the Court found a strong case for recalling its earlier order. The principle established is that High Courts should recall earlier orders when subsequent Supreme Court judgments on related issues necessitate a fresh adjudication, particularly when constitutional validity of a provision is permitted to be challenged.

What were the facts?

This matter concerns an application (I.A.No.1 of 2026) filed by the Income Tax Department (Petitioners) seeking to recall an order dated 01.05.2025 passed in Writ Petition No. 31417 of 2024. The original writ petition was filed by the Primary Agricultural Cooperative Credit Society Limited (Respondent). The Department's application is based on a subsequent decision of the Supreme Court dated 10.04.2026 in a batch of cases concerning faceless proceedings, specifically mentioning the case of Income Tax Officer, Ward 2(1), Chandigarh & Ors. v. Tej Partap Singh. The Supreme Court's order in that batch had remitted matters to the respective High Courts, allowing petitioners to question the constitutional validity of Section 141-A of the Income Tax Act. The High Court had previously disposed of the writ petition with liberty to the parties to seek revival based on the outcome of the Supreme Court matters.

What were the issues?

1. Whether the order dated 01.05.2025 in W.P.No.31417 of 2024 should be recalled in light of the Supreme Court's decision dated 10.04.2026 in the faceless batch of cases, particularly concerning the constitutional validity of Section 141-A of the Income Tax Act. Assessee (Respondent) Contentions: The judgment does not record specific contentions made by the Respondent in response to the application for recalling the order. However, the context implies their position would be aligned with the Supreme Court's directive allowing for such review. Revenue (Petitioners) Contentions: The Income Tax Department (Petitioners) sought recall of the earlier order based on the Supreme Court's decision in the faceless batch. This decision remitted matters to High Courts, permitting challenges to the constitutional validity of Section 141-A of the Income Tax Act. The Department argued that the Supreme Court's order created a strong case for recalling the High Court's previous order.

Which sections of the Income-tax Act were involved?

141-A

AI-generated summary — verify with the full judgment below

134471 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 r.A.NO.1 0F 2026 IN WRIT PETITION NO: 31417 OF 2024 Between: '1. The lncome Tax Officer, Ward I, Sangareddy lncome Tax Office, Veerabhadra Nagar, New Bus Stand, Veerabhadra Nagar, Sangareddy Telangana. 2. The Principal Chief Commissioner -bf 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. .....PETITIONERS AND PRIMARY AGRICULTURAL COOPERATIVE CREDIT SOCIETY LIMITED PICHERAGUD, Rep. by the Secretary POCHARAM PRASHANTH KUMAR S/o. NARSIMULU, Aged about 30 years, Occupation. Business, Fyo. VE CREPIT SOCIETY H NO 1 PICHARAGAD, KOHIR MANDAL, MADAK 502210, Telangana, lndia. PAN AA;AB P0984A, Assessment Ye ar. 2O1 8-1 9 .....RESPONDENT 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 31417 of 2O24 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. Counsel for the Petitioners : Ms. J.SUNITHA, LEARNED SENIOR STANDING COUNSEL FOR THE INCOME TAX DEPARMENT Counsel forthe Respondent: SRI THANNERU CHAITANYA KUMAR The Court made the following ORDER l.A.No.1 of 2026 is filed by the respondenulncome Tax Department seeking for the recalling the order, dated 01-05-2025, in W.p.No.31417 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 141-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 Court pertaining to the faceless proceedings. Given the fact that the Hon'ble Supreme court has itself remitted a 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/-T.SR|!]EV+'-_ -- ,REGTSTRAR //TRUE COPY// To AQSTSTANT /\ r-,- , ) sEcrrON OFFICER 1. The lncome Tax Officer, Ward 1, Sangareddy lncome Tax ffice, 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 50002g, Telangana. 3. The chairman, centrat Board of Direct raxes, Department of Revenue, Ministry of Finance, Government of rndia, secretariat Buirdings, New Derhi - i 10 b01. 4. The Nationar Faceress Assessment center, rncome 1ax Department, New Derhi.

The Secretary to Government, Union of lndia, Department of Revenue, Ministry of Finance, New Delhi - 1 10 001 . 6. The Section fficer, Posting Section, High Court for the State of Telangana at Hyderabad.l 7. The Section fficer, D.B. 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, LEARNED SENIOR STANDING COUNSEL FOR THE INCOME TAX DEPARMENT, Advocate [OPUC] 10.One CC to SRI N BHUJANGA RAO, DEPUW SOLICITOR GENERAL OF lNDlA, Advocate (OPUC) 1 1 . Two CD Copies so \c2r TKS

HIGH GOURT DATED: 3110812026 ORDER |.A.NO.1 0F 2026 IN WP.No.31417 ot 2024 ALLOWING THE !.A 1[Si? M {gr:, ^:'.--')" \\ E STATE tJo Ll n, F, .o64 ufto'

Recent GST High Court judgments

Search GST case law →