PRIMARY AGRICULTURAL COOPERATIVE SOCIETY LIMITED vs. The Income Tax Officer Ward 1

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WP/31456/2024HC TelanganaHBHC01060995202402 May 2025Bench: P.SAM KOSHY,NARSING RAO NANDIKONDA4 pages
AI SummaryPartly Allowed

What did the High Court hold?

The High Court has granted an interim stay of the impugned assessment order dated March 5, 2024, and the consequential demand notice. This interim relief is granted in light of an order passed by the Hon'ble Supreme Court in Diary No. 2196 of 2026 and batch, decided on April 10, 2026. The matter is listed for further hearing on August 27, 2026, along with a batch of similar cases. No decision on the merits of the case has been made at this stage.

What were the facts?

The petitioner, Primary Agricultural Cooperative Society Limited, is challenging an assessment order dated March 5, 2024, passed by the National Faceless E-Assessment Centre for Assessment Year 2018-19. The assessment determined the total income at Rs. 1,72,78,936. The petitioner contends that this order is arbitrary, illegal, without jurisdiction, and violative of principles of natural justice and constitutional provisions. The petition seeks to declare the assessment order and the consequential demand notice under Section 156 void and to set them aside. The petitioner also filed an interim application seeking to suspend the operation of the impugned order and demand notice pending the disposal of the writ petition.

What were the issues?

1. Whether the assessment order passed under Section 147 read with Section 144 of the Income Tax Act, 1961, by the National Faceless E-Assessment Centre for Assessment Year 2018-19, determining the total income at Rs. 1,72,78,936, is arbitrary, illegal, without jurisdiction, void-ab-initio, and violative of the principles of natural justice, Articles 14, 19(1)(g), and 265 of the Constitution of India, and Section 148A of the Income Tax Act, 1961. The petitioner argues that the assessment order is bad in law and violates fundamental rights and statutory provisions. The respondents' contentions are not recorded in the provided text.

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 148A,Section 156

AI-generated summary — verify with the full judgment below

134471 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (SPecial Original Jurisdiction) THURSDAY, THE THIRTEENTH DAY OF AUGUST TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA WRIT PETITION NO: 31456 0F 2024 Between: PRIMARY AGRICULTURAL COOPERATIVE SOCIETY LIMITED, Rep' by the Secretary MANDHADA SRIDHAR REDDY S/o. SATTI REDDY MANDHADA' Aged about 43 years, Occupation. Business, R/o. VE SOCIETY DOOR NO 8 77 KANDI' VILLAGE KANDI, SANGAREDDY MANDAL, MEDAK 502285, Telangana, lndia' .....PETITIONER AND 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 -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 - 110 001. .....RESPONDENTS Petition Under Arlicte 226 of the constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High court may be pleased to

issue an appropriate w-it, order or direction more particularly one in the nature of Writ of Mandamus declaring the order passed by the lncome Tax Authorities (National Faceless E-Assessmert Centre) completed the assessment U/S 147 r.w.s 144 Date of 05-03-2024, DIN ITBA/ASTlsl14712023-2411062055902(1) for the Assessment Year 2018-19 determining the total income of Rs. 1,72,78,9361.as arbitrary, illegal, bad in law, without jurisdiction, void-ab-initio, violative of the principles of natural justice apart from being violative of Articles 1 4, 19(1 )(g) and 265 of the Constitution of lndia and Sec. 148A of the lncome Tax Act, 1961 , and consequently set aside the same in the interests of justice. l.A.NO:1 OF 2024 Petition Under Section '151 CPC praying that in the circumstances stated in the affidavit filed in support of the petitron, the High Court may be pleased to suspend the order Under section 14;' r.w.s 144 of the -lncome-tax Act Date of 05-03-2024, DIN ITBAJAST 15114712023-2411062055902(1) for the Assessment Year 2018-19 determining the total income of Rs. 1,72,78,9361. and Demand notice u/s 156 of the lncome Tax act 1961, vide DlN, 86_ Notice No. ITBtuAST/S/'|5612023-241 1062056010(1) Dl. 05-03.2024 for the assessment year 2018-19 pending disposal of the above writ petition. Counsel for the Petitioner : SRl. THANNERU CHAITANYA KUMAR Counsel for the Respondents : Ms. J.SUNITHA (JUNIOR sc FoR lNcoME TAx) The Court made the follovving OROER List on 27'8'2026 along with batch. Meanwhile, there shall be interim stay of the impugned order, in the light of the order granted by the l.lon'ble Supreme Gourt vide its order in Diary No.2196 of :2026 and batch decided on 10'4-2026' SD/. A.H.S. GOWRI SHANKAR //TRUE COPY// ASSf.t ANT REGISTRAR \\ sFcTroN oFFrcER 1. The lncome Tax Officer Ward 1, Sangareddy lncome Tax ffice, Veerabhadra Nagar, New Bus Stard, Veerabhadra Nagar, Sangareddy, Telangana. 'l'o

-!!*-...----t-t SA TJ The Principal Chief Commissioner ot lhcome Tax - Telangana and A.P,, Hyderabad, lT Towers, AC Guards, Masab Tank, Hyderabad -500028, Telangana. 3. The Chairman, The Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Government of lndia, Secretariat Buildings, New Delhi - 110 001. 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 - 1 '10 001 . 6. The Section fficer, Non Service 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 (JUNIOR SC FOR INCOME TAX) Advocate [OPUC] '10. Two CD Copies w

List on 27.08.2026 along with batch HIGH COURT DATED: 1310812026 ORDER WP.No.31456 ot 2024 INTERIM STAY. ""5ct> e 5 5 E D t t\ 7, t2[ I E L I A E A.T T 5 AU P 2 rQ '5 aI \'> X-' ,

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