PRIMARY AGRICULTURAL COOPERATIVE SOCIETY LIMITED vs. The Income Tax Officer

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WP/31435/2024HC TelanganaHBHC01060956202401 May 2025Bench: P.SAM KOSHY,NARSING RAO NANDIKONDA4 pages
AI SummaryAllowed

What did the High Court hold?

The High Court allowed I.A.No.1 of 2026, thereby restoring Writ Petition No. 31435 of 2024 to its file. The Court reasoned that the Supreme Court's decision dated 10.04.2026, which remitted all matters concerning faceless proceedings to the respective High Courts and permitted petitioners to question the constitutional validity of Section 147-A of the Income Tax Act, 1961, created a strong case for the revival of the present writ petition. The Court noted that it had previously granted liberty to the parties to move for revival subject to the outcome of the Supreme Court matters. Given that the Supreme Court has now remitted these matters, the Court found it appropriate to revive the writ petition for fresh adjudication. The operative direction is the allowance of the interlocutory application and the restoration of the writ petition.

What were the facts?

This case involves an interlocutory application (I.A.No.1 of 2026) filed by the Income Tax Department (Petitioners) seeking the restoration of Writ Petition No. 31435 of 2024. The original writ petition was filed by Primary Agricultural Cooperative Society Limited (Respondent) for the assessment year 2018-19. The High Court had previously disposed of the writ petition, granting liberty to either party to move for revival based on the outcome of matters pending before the Supreme Court concerning faceless proceedings. The current application is based on a Supreme Court decision dated 10.04.2026, which remitted matters related to faceless proceedings 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 present writ petition (WP No. 31435 of 2024) should be revived for fresh adjudication in light of the Supreme Court's order dated 10.04.2026 concerning faceless proceedings and the constitutional validity of Section 147-A of the Income Tax Act, 1961. Assessee's Contentions (Implicit through the application for revival): The Respondent (Assessee) implicitly supports the revival of the writ petition, as the Supreme Court's decision allows for the challenge to the constitutional validity of Section 147-A, which is likely a central issue in the original writ petition. The Respondent would have been permitted to move for revival as per the earlier order of this Court. Revenue's Contentions: The Petitioners (Revenue) are seeking the restoration of the writ petition based on the Supreme Court's decision. They argue that the Supreme Court's order, which remitted matters to High Courts for considering the constitutional validity of Section 147-A, creates a strong case for the revival of the present writ petition.

Which sections of the Income-tax Act were involved?

Section 147-A

AI-generated summary — verify with the full judgment below

I I i 13447 | IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (SPecial Original Jurisdiction) TUESDAY, THE TWENTY FIFTH 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 ol 2026 IN WRIT PETITION NO: 31435 OF 2024 Between: AND 2 ThelncomeTaxOfficer,Wardl,SiddipetlncomeTaxOffice,8-1-22'1st Floor, Subhash Road, Siddipet,Telangana. The lncome Tax Officer, Ward 1, Sangareddy lncome Tax Office' Veerabhadra Nagar, New Bus Stand, Veerabhadra Nagar, Sanga Reddy' Telangana. The Principal Chief Commissioner of lncome Tax, Telangana and A P' Hyderabad, lT Towers, AC Guards, Masab Tank' Hyderabad - 500028' Telangana. 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. The National Faceless Assessment center, lncome Tax Department, New Delhi. The Union of lndia, Represented by its Secretary to the Government' Department of Revenue, Ministry of Finance, New Delhi - 1 10001' ...PETITIONERS J 4 6 PRIMARYAGRICULTURALCooPERATIVESoCIETYLIMITED,Rep.bythe S"Lr"tr.V MERIGE VITTAL REDDY S/o. RAMAKISTA REDDY MERIGE' Aged about i4 years, Occupation Business, FVo H'NO 2-14, JAMBIKUNJA' NIZAMPET, SANGAREDDY 502371, Telangana, lndia' Assessment Year. 2018-19 ...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 cleased to recall/revive the order dated 01.05.2025 in wP No 31435 o',f 2024 for fresh adjudication considering the order dated 10.04.2026 passed by the Hon'ble Supreme court in Counsel for the Petitioners: Ms. J SUNITHA, Sr. SC FOR lT Counsel for the Respondent: SRt THANNERU CHAITANYA KUMAR The Court made the following: ORDER l.A.No.1 ol 2026 is filed by the respondenUlncome Tax Department seeking for the restoration of the present writ Petition No.3't435 ol 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 ol 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 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. WeareoftheconsideredopinionthataStrongcaseforreviva|ofthe present writ petition has also been made out. Accordingly, lA No.1 of 2026 stands allowed. lncome Tax Officer, Ward 2(1), connected batch matters. To, Chandigarh & Ors v Tej Partap Singh and //TRUE COPY// 1. The lncome Tax Officer, Ward 1 , Siddipet lncome Tax Office, 8-1-22, 1st Floor. Subhash Road, Sidd ipet,Telangana. SO/. A.JAYASREE ASSISTANT REGISTRAR .-.,\ (uN'*tr*oFFrcER \/ I

2.ThelncomeTaxofficer,Wardl,sangareddylncome-Tax-office, Veerabhadra Nagar, New 'Bus Stand, Veerabhadra Nagar' Sanga Reddy' Telangana. 3. The Principal Chief Commissioner of lncome Tax' Telangana an! f,!' - HyJeraOaO, lT Towers' AC Guards, Masab Tank' Hyderabad - 500028' Telangana. 4. The chairman, central Board of Direct Taxes, Department of Reven.ue, ftfini.t.V of Finance, Govemment of lndia, secretariat Buildings' New Delhi - 1 10 00'1 . 5. The National Faceless Assessment Center, lncome Tax Department' New Delhi 6. The Secretary to the Government, Department of Revenue' Ministry of Finance, New Delhi, Union of lndia - 1 1000'1 ' 7. The Section Officer, Writ Posting Section' High Court for the State of f"Lngan" at Hyderabad. (for placing before the appropriate bench) 8. The section officer, writ DB Section, High court for the state of Telangana at Hyderabad. 9. One CC to SRI THANNERU CHAITANYA KUMAR' Advocate [OPUC] 10.One CC to Ms. J.SUNITHA, Sr. SC FOR lT IOPUC] 11.Two CD CoPies BSR TKS Y1,'

HIGH COURT DATED: 2510812026 ORDER l.A.No.1 of 2026 IN WP.No.31435 of 2024 ALLOWING THE I.A. & RESTORING THE W.P. TO ITS FILE ( 1 kiE:l14 1O SEP zffi D6sP4T:. o 2 \ \1; '\... .l I \" "P9't (\- Efi(,t

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