PRIMARY AGRICUTURAL CO OPERATIVE SOCIETY LIMITED vs. The Income Tax Officer Ward 1

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WP/33424/2024HC TelanganaHBHC01064754202428 April 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 held that a strong case had been made out for recalling the earlier order dated April 28, 2025. This decision was based on the Supreme Court's order dated April 10, 2026, which remitted matters concerning faceless proceedings to the respective High Courts, permitting petitioners to question the constitutional validity of Section 147-A of the Income Tax Act, 1961. The High Court reasoned that since the Supreme Court itself had remitted such matters, recalling the previous order was appropriate. The operative direction was to recall the order dated April 28, 2025. No issues were expressly left undecided.

What were the facts?

The Income Tax Department (Petitioners) filed an interlocutory application (I.A. No. 1 of 2026) seeking to recall an order dated April 28, 2025, passed by the High Court in Writ Petition No. 33424 of 2024. The original writ petition was filed by the Primary Agricultural Co-operative Society Limited, Gudihathnoor (Respondent). The Department's application was based on a subsequent order of the Supreme Court dated April 10, 2026, in a batch of matters concerning faceless proceedings. The High Court had previously disposed of the writ petition, granting liberty to the parties to move for revival subject to the outcome of the Supreme Court matters. The Supreme Court's order remitted such matters to the respective High Courts, allowing petitioners to question the constitutional validity of Section 147-A of the Income Tax Act, 1961.

What were the issues?

1. Whether the High Court should recall its earlier order dated April 28, 2025, in WP No. 33424 of 2024, in light of the Supreme Court's decision dated April 10, 2026. (Question of law and procedure) The Petitioners (Income Tax Department) argued that the Supreme Court's order in the faceless batch matters, which remitted cases to High Courts for adjudication on the constitutional validity of Section 147-A, necessitates the recalling of the High Court's previous order. They contended that the Supreme Court's directive provides a basis for fresh adjudication. The Respondent (Primary Agricultural Co-operative Society Limited) did not present arguments in the provided text, but the context implies their agreement or acquiescence to the recall, given the High Court's prior liberty granted to parties.

Which sections of the Income-tax Act were involved?

Section 147-A

AI-generated summary — verify with the full judgment below

134471 IN THE HIGH COURT FOR THE STATE OF TELANGANA , AT HYDERABAD MONDAY, THE SEVENTH DAY OF SEPTEMBER TWO THOUSAND AND TWENW SIX PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRIJUSTICE NARSING RAO NANDIKONDA |.A.NO.1 0F 2026 WRIT PETITION NO: 33424 OF 2024 Between: 1. The lncome Tax Officer Ward 1, Adilabad, 50400'lTelangana. 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 - 110 001 . 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 ....PETITIONERS AND Primary Agricultural Co Operative Society Limited, Gudihathnoor. Rep. by the CEO Kendre Pandari, S/o: Ratanhari Kendare, Aged about 44 yearc, Occupation: Business, RI/o Gudihathnoor, ADILABAD 504001, Telangana. ...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 28.04.2025 in WP No 33424 of 2024 for fresh adjudication considering the Order dated 10.04.2026 passed by the Hon'ble Supreme Court in IN

lncome Tax Officer. Ward 2(1), Chandigarh & Ors. v. Tej partap Singh and connected batch matters. This petition coming on for hearing, upon pentsing the petition and Memorandum of Grounds filed in the support thereof and .rpon reading the Order dated 28.04.2025 in W.P.No.33424 of 2024 and upon hearing the arguments of M/S. J. SUNITHA, appearing on behalf of the Petitioners and SRI THANNERU CHAITANYA KUMAR, appearing on behalf of the Respondent. The Court made the following: ORDER l.A.No.l ot 2026 is filed by the respondenUlncome Tax Department seeking for the recalling the order, dated 28.04.2025, in Wp.No.33424 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 of 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, we are of the considered opinion that a strong case for recalling the order dated 28.04.2025 has also been made out. Accordingly, lA No..l of 2026 stands allowed and the earlier order stands recalled. SO/. S. MALLIKARJUNA RAO ASSISTANT REGISTRAR //TRUE COPYII SECTION OFFICER To, 1 The lncome Tax Officer Ward 1 , Adilabad 504001Telangana

2.

The Principal Chief Commissioner of lncome 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 - 110001. 4. The National Faceless Assessment Center, lncome Tax Department' New Delhi 5. The Secretary to the Government, The Union of lndia, Department of Revenue, Ministry of Finance, New Delhi - 110 001 6. The CEO Kendre Pandari, S/o: Ratanhari Kendare, Primary Agricultural Co Operative Society Limited, Gudihathnoor, Rl/o Gudihathnoor, ADILABAD 504001, Telangana. 7. One CC to Sri Thanneru Chaitanya Kumar, Advocate [OPUC] 8. One CC to Ms. J. Sunitha (JUNIOR SC for INCOME TAX) IOPUC] 9. Two CD Copies TJ GJPw

HIGH COURT DATED: 0710912026 ORDER t.A.NO.1 0F D2026 IN WP.No.33424 ot 2024 ALLOWING THE !.A TWO DRAFTS ( S,: S l-a 1 c o e a, r 7 sIC lnli \ ri'I (o{+n &tr

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