PRIMARI AGRICULTURAL COOPERATIVE SOCIETY, vs. The Income Tax Officer Ward 1,

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WP/31441/2024HC TelanganaHBHC01060953202401 May 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. The Court found that the Supreme Court, in its decision dated 10.04.2026, had remitted all matters concerning faceless proceedings 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 Supreme Court's outcome, and the Supreme Court had indeed remitted such matters, the Court was of the considered opinion that a strong case for recalling the earlier order dated 01.05.2025 had been made out. Consequently, the earlier order was recalled, and the writ petition was restored to file without costs. The operative direction was to recall the order dated 01.05.2025 and restore the writ petition to file.

What were the facts?

The Income Tax Department (Petitioners) filed an interim application (I.A. No. 1 of 2026) seeking to recall an order dated 01.05.2025 passed in Writ Petition No. 31441 of 2024. The original writ petition was filed by the Priivari Agricultural Cooperative Society (Respondent). The Department's request was based on a recent Supreme Court decision dated 10.04.2026 in a batch of cases concerning faceless proceedings. In that decision, the Supreme Court had remitted matters to respective High Courts, allowing petitioners to challenge the constitutional validity of Section 147A of the Income Tax Act, 1961. The High Court had previously granted liberty to the parties to move for revival of the writ petition, subject to the outcome of the Supreme Court matters. The Department argued that the Supreme Court's remittance created a strong case for recalling the earlier order.

What were the issues?

1. Whether the order dated 01.05.2025 in WP No. 31441 of 2024 should be recalled in light of the Supreme Court's decision dated 10.04.2026 concerning faceless proceedings and the remittance of matters to High Courts for adjudication on the constitutional validity of Section 147A of the Income Tax Act, 1961. Assessee's Contention (Implicit in the application): The Supreme Court's decision necessitates a reconsideration of the High Court's earlier order, as the basis for the original disposal might have been affected by the Supreme Court's directive to examine the constitutional validity of Section 147A. Revenue's Contention (Implicit in the application): The Supreme Court's remittance of similar matters to High Courts for fresh adjudication on the constitutional validity of Section 147A provides a strong ground for recalling the High Court's prior order in this writ petition, allowing for a proper examination of the issues.

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 (Special Original Jurisdiction) MONDAY, THE SEVENTH DAY OF SEPTEMBER 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 OF 2026 IN WRIT PETITION NO: 31441 OF 2024 Between: 'l . 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, AC Guards, Masab Tank, Hyderabad - 500028 3. The Central Board of Direct Taxes Represented by its Chairman, Government of lndia, Secretariat Buildings, New Delhi 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, I\/inistry of Finance, New Delhi - 110 001 ' ..,PETITIONERS AND PRIIVARI AGRICULTURAL COOPERATIVE SOCIETY, Rep by the Secretary PATIL JAGANNATH S/o. PATIL SANG SHETTY , Aged about 40 years, occupation. Business, R/o. oPP CooPERATIVE BANK oF lNDlA, NARAYANKED PRIMARI AGRICULTURAL, SANGAREDDY - 502286, Telangana, lndia' ...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 recall/revive the order dated 0'1 .05.2025 in WP No 31441 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. Counsel for the Petitioners: M/s J. SUNITHA (JUNIOR SC FOR INCOME TAX) Counsel for the Respondent: SRl. 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 recalling the order, dated 01.05'2025, in WP.No.3'lM1 ot 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, 't 961 . 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, we are of the considered opinion that a strong case for recalling

the order dated 01.05.2025 has also been made out. Accordingly, lA No.'t of 2026 stands allowed and the earlier order stands recalled' SD/-B.REKHA RANI ASSISTANT REGISTRAR //TRUE COPY// To, SEC FFICER 1. The lncome Veerabhadra Telangana. 2. The Principal Chief Commissioner of lncome, AC Guards' lVlasab Tank' Hyderabad - 500028 3.TheCentralBoardofDirectTaxesRepresentedbyitsChairman'Government of India, Secretariat Buildings, New Delhi 4. The National Faceless Assessment Center, lncome Tax Department' New Delhi. 5. The Secretary to the Government, Department of Revenue' Union of India' lrilinistry of Finance, New Delhi - 1 10 001 . 6'Thesectionofficer,WritDivisionBenchSection,HighCourtfortheStateof Telangana at HYderabad. 7'TheSectionofficer,Postingsection'HighCourtfortheStateofTelanganaat Hyderabad. B. One CC to SRl. THANNERU CHAITANYA KUI\'{AR, Advocate [OPUC] 9. One CC to M/s J. SUNITHA (JUNIOR SC FOR INCOME TAX) [OPUC] 1 0. Two CD CoPies DAN PB le-- *to Tax Officer Ward '1 , Sangareddy lncome Tax Office' Nagar, New Bus Stand, Veerabhadra Nagar, Sangareddy'

HIGH COURT DATED: 0710912026 LIST ALONG WITH BATCH ORDER WP.No.31441 of 2024 2 DRAFTS t 1 rtE 5TA 2BOIT M v2 c) .L Jo (J +\ .l t n -. - .,-. :'- ALLOWING THE l.A No.1 OF 2026 AND RESTORING THE WRIT PETITION TO FILE WITHOUT COSTS f.t f-.+- ( r4,' \-,--l t. '-lN \ ''$ a \\r\ 1ry'

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