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

PDF · subscribers
WP/32192/2024HC TelanganaHBHC01062000202402 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 and recalled the order dated 02.05.2025 in W.P.No.32192 of 2024. The Court reasoned that the Supreme Court, by remitting all matters pending before it concerning faceless proceedings to the respective High Courts, had created a strong case for recalling the earlier order. This was done to permit fresh adjudication, particularly in light of the Supreme Court's allowance for petitioners to question the constitutional validity of Section 147-A of the Income Tax Act, 1961. The operative direction was the allowance of the interlocutory application and the recall of the previous order.

What were the facts?

The Income Tax Officer, Ward 1, Sangareddy, and other revenue authorities (Petitioners) filed an interlocutory application (I.A.No.1 of 2026) seeking to recall an order dated 02.05.2025 passed in Writ Petition No. 32192 of 2024. The original writ petition was filed by the Primary Agricultural Cooperative Credit Society Limited, Cheekode (Respondent). The recall is sought in light of a recent Supreme Court decision dated 10.04.2026 in a batch of cases concerning faceless proceedings, which remitted matters to High Courts to allow petitioners to question the constitutional validity of Section 147-A 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 Supreme Court matters.

What were the issues?

1. Whether the order dated 02.05.2025 in W.P.No.32192 of 2024 should be recalled for fresh adjudication, considering the Supreme Court's order dated 10.04.2026 in the faceless batch matters. Assessee (Revenue) Contentions: The Petitioners (Income Tax Department) 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, necessitates the recall of the earlier High Court order. They relied on the Supreme Court's direction permitting petitioners to question the constitutional validity of the said provision. Revenue Contentions: The Respondent (Assessee) did not record any specific arguments in the provided text, other than being the party against whom the recall application was filed.

Which sections of the Income-tax Act were involved?

Section 147-A

AI-generated summary — verify with the full judgment below

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 ot 2026 IN WRIT PETITION NO: 32192 OF 2024 13447 | Tax Office, Sangareddy Between: 1. The lncome Tax Veerabhadra Nagar, 502001 , Telangana. AND Officer, Ward '1 , Sangareddy lncome New Bus Stand, Veerabhadra Nagar, 2 The Principal Ctief Commissioner of lncome Tax, Telangana and A.P, Hyderabad, lT Towers, AC Guards, Masab Tank, Hyderabad - 50OO2B, Telangana. The Central Board of Direct Taxes, Represented by its Chairman, Department of Revenue, Minlstry of Finance, Government of lhdia, Secretariat Eiuildings, New Delhi - 110 00'1 . 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 Finbnce, New Delhi - 110 001 . ...PETITIONERS PRIMARY AGRICULTURAL COOPERATIVE CREDIT SOCIETY LIMITED, CHEEKODE, Rep. by the Secretary PADAMATI PRASHANTH, S/o. SATHYANARAYANA PADAMATI, Aged about 33 years, Occupation. Business, F/o. CHEEKODE PAPANAPET, IVEDAK 502303, Telairgana, lndia. PAN. AABAP7549R, Assessment Year. 201 B-19 ...RESPONDENT 3 4 E 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 02.05.2025 in W.P.No.32192 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: Ms. J.SUNITHA, Sr. SC FOR INCOME TAX Counsel for the Respondent: SRI THANNERU CHAITANYA KUMAR The Court made the following: ORDER l.A.No.1 ol 2O26 is filed by the respondenUlncome Tax Department seeking for the recalling the order, dated 02.05.2025, in WP.No.32192 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, 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 Hlgh Courts, we are of the considered opinion that a strong case for recalling the order dated 02.05.2025 has also been made out. Accordingly, lA No.1 of 2026 stands allowed and the earlier order stands recalled. SD/. K.V.O.NARSI BABU ASSISTANT REGISTRAR //TRUE COPY// To, SECTION OFFICER The lncome Tax Offrcer, Ward 1, Sangareddy lncome Tax Office, !991q!n1Oia Nagar, New Bus Stand, Veerabhadra Nagar, Sangareddy 502001 , Telangana. The Principal Ctief Commissroner of lncome Tax, Telanqana and A.p. llvderabad, tT Towers AC Guards, Masab Tank. HyOeiatiO _-SOOb)'a, Telangana. 2 6

3.

The Chairman, 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 5 b 7 8 u Delhi. iti" "'S"cr"tuw to the Government, Department of Revenue, Ministry of Finance, New'Delhi, Union of lndia - 1 10 001 . il; s;;r"ta;. paaimitl Prashanth, S/o. Sathyanarayana Padamati, Primary A;;"r1il;i-6oooeraiiu" Credit Societv Liniited' Cheekode, Occupation' riili-n"i!, nyo. -Cfi eekode, Papanapet' Majdak-502303, Telang-ana, .lndia One CC to SRI THANNERU CHAITANYA KUMAR, AdVOCAIE IOPUU,I One CC to Ms. J.SUNITHA, Sr. SC FOR lT IOPUC] oil" cb-t"-Snr r.i.anuLA(cn RAo, DEPIJTY sbllclroR GENERIAL oF iNOf n, High Court for the State of Telangana at Hyderabad [OPUC] 10.Two CD Copies BSR cJP Ur-

2 DRAFTS HIGH COURT DATED: 0710912026 ORDER I.A.No.1 ot 2026 IN WP.No.32192 of 2024 '=:::-j_: :\ qr-. 1-iTA7 k o,) 1 7 SEP 2026 ) l.',)',,,/ ALLOWING THE I.A. & RECALLING THE ORDER OF W.P. \> ."v(d -k- 1

More judgments on Section 147-A

All 43 judgments and leading authorities on Section 147-A →

Recent GST High Court judgments

Search GST case law →