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

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WP/33444/2024HC TelanganaHBHC01064786202428 April 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 reviving Writ Petition No. 33444 of 2024. The Court reasoned that the Supreme Court, in its decision dated 10.04.2026 concerning faceless proceedings, had remitted all such matters to the respective High Courts. This remittance specifically permitted petitioners to challenge the constitutional validity of Section 147-A of the Income Tax Act. Given that the High Court had previously granted liberty to move for revival contingent on the Supreme Court's decision, and the Supreme Court had indeed remitted the matters, the Court found a strong case for revival. The operative direction is the allowance of the interlocutory application, leading to the restoration of the writ petition for further adjudication.

What were the facts?

The Income Tax Department (Petitioners) filed an interlocutory application (I.A. No. 1 of 2026) seeking the revival of Writ Petition No. 33444 of 2024. The original writ petition was filed by the Primary Agricultural Co Operative Credit Society Limited (Respondent) and had been disposed of earlier. The Department's application for revival is based on a recent Supreme Court decision dated 10.04.2026 in a batch of cases concerning faceless proceedings. In that Supreme Court decision, matters were remitted to the respective High Courts, allowing petitioners to question the constitutional validity of Section 147-A of the Income Tax Act. The High Court had previously granted liberty to the parties to move for revival subject to the outcome of the Supreme Court's decisions on faceless proceedings.

What were the issues?

1. Whether the present Writ Petition No. 33444 of 2024 should be revived for fresh adjudication in light of the Supreme Court's order dated 10.04.2026 in the faceless batch matters. Assessee (Revenue) Arguments: The Revenue contended that the Supreme Court's decision in the faceless batch matters, which remitted cases to High Courts for considering the constitutional validity of Section 147-A, warrants the revival of the present writ petition. The Revenue highlighted that the High Court had previously granted liberty to seek revival based on the outcome of these Supreme Court matters. Assessee (Respondent) Arguments: No specific arguments were recorded for the Respondent (Primary Agricultural Co Operative Credit Society Limited) in this order concerning the revival application. The order focuses on the application filed by the Revenue.

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 WEDNESDAY, THE 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 |.A.NO.1 0F 2026 IN WRIT PETITION NO: 33444 OF 2024 Between: 1. The lncome Tax Officer Ward 1, Adilabad/ Adilabad, Hyderabad, Adilabad, Hyderabad, Hyderabad 504106, Telangana. 2. The Principal Chief Commissioner of lncome Tax, Telangana and A.P, Hyderabad, lT Towers, AC Guards, [Vlasab Tank, Hyderabad - 500028, Telangana. 3. The Central Board of Direct Taxes, Represented by its Chairman, Department of Revenue, Ministry of Finance, Govemment of lndia, Secretariat Buildings, New Delhi - 1 10 001. 4. The National Faceless Assessment Center, lncome Tax Depa(ment, New Delhi. 5. The Union of lndia, Represented by its Secretary to the Government, Department of Revenue, Ministry of Finance, New Delhi - 1'10 001 . ....PETITIONERS AND Primary Agricutural Co Operative Credit Society Limited, Rep. by the CEO Chitala Keshav, S/o. Narayana Chintala, Aged about 58 years, Occupation. Business, Fl/o. Old gram panchayath office, Thamsi, Adilabad 504312, 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 revive/recall the order daled 28.04.2025 in WP No 33444 ol 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. This petition coming on for hearing, upon perusing the petition, affidavit and Memorandum of grounds in support thereof, and upon hearing the arguments of SRI T.CHAITANYA KUI\4AR. Counsel for the Petitioners Ms. J.SUNITHA, SENIOR STANDING COUNSEL FOR INCOME TAX on behalf of Respondent. The Court made the following: ORDER l.A.No.1 of 2026 is filed by the respondent / lncome Tax Department seeking for the restoration of present Writ Petition No.33444 of 2024 in terms of recent decision of the Hon'ble Supreme Court in the faceless batch which was decided on 10-4-2026, 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. 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 revival of the present writ petition has also been made out. Accordingly, LA.No.1 of 2O26 stands allowed. //TRUE COPY// SDi. P.C.SULEKHA DEVI ASSISTANT REGISTRAR SECTION OFFICER To 1. The CEO ,Primary Agricutural Co Operative Credit Society Limited, Chitala Keshav, S/o. Narayana Chintala, Aged about 58 years, Occupation. Business, R/o Otd gram panchayath office, Thamsi, Adilabad 504312, Telangana, lndta. 2 The rncome Tax Officerward '1 , Adirabad/ Adirabad, Hyderabad, Adirabad, Hyderabad, Hyderabad 504.1 06, Telangana. 3. The principal Chief Commissioner of lncome Tax, Telangana and A.p. iJlr:Atflt rr rowers, AC Guards. Mffro"irr*, Hyderabad - 5oo02e.

4.

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 . 5. The National Faceless Assessment Center, lncome Tax Department, New Delhi. 6. The Secretary to Government, Union of lndia, Department of Revenue, Ministry of Finance, New Delhi - 110 001 . 7. The Section Officer, D.B. Section, High Court for the State of Telangana at Hyderabad. 8. The Section Officer, Posting Section, High Court for the State of Telangana at Hyderabad. 9. One CC to SRI T.CHAITANYA KUMAR, Advocate [OPUC] 10.One CC to Ms. J SUNITHA, SENIOR STANDING COUNSEL FOR INCOME TAX Advocate [OPUC] 1 1 . Two CD Copies SA \QT TKS

HIGH COURT DATED: 0510812026 List on 2 7-8-202 6 ORDER I.A.NO.1 0F 2026 IN WP.No.33444 of 2024 ALLOWING THE I.A. I ?? ruB2\ItB n DESFAT c STATE 9z Gt .b * .ofd \3 w 6rf* \\

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