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

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WP/33454/2024HC TelanganaHBHC01064758202428 April 2025Bench: P.SAM KOSHY,NARSING RAO NANDIKONDA2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court allowed I.A. No.1 of 2026, thereby recalling the earlier order dated 28.04.2025. The Court reasoned that the Supreme Court's decision in the faceless proceedings batch, which remitted matters to High Courts to examine the constitutional validity of Section 147-A of the Income Tax Act, 1961, created a strong case for recalling its previous order. The Court directed that W.P.No.33454 of 2024 be listed along with other connected matters for hearing on 11.11.2026 before an appropriate Bench, considering the amendment and challenge to the vires of Section 147-A. Additionally, an interim stay was granted on the impugned order, referencing the Supreme Court's order in Civil Appeal No.004716 of 2026 and batch.

What were the facts?

The Income Tax Department (respondent) filed an interlocutory application (I.A.No.1 of 2026) seeking to recall an earlier order dated 28.04.2025 in W.P.No.33454 of 2024. This recall was sought in light of a recent Supreme Court decision on 10.04.2026 concerning faceless proceedings. The Supreme Court had remitted matters to respective High Courts, allowing petitioners to question the constitutional validity of Section 147-A of the Income Tax Act, 1961. The High Court had previously disposed of the writ petition, granting liberty to parties to move for revival based on the Supreme Court's outcome. The Court found a strong case for recalling the earlier order given the Supreme Court's directions.

What were the issues?

1. Whether the order dated 28.04.2025 in W.P.No.33454 of 2024 should be recalled, in light of the Supreme Court's decision in the faceless proceedings batch dated 10.04.2026, which remitted matters to High Courts for considering the constitutional validity of Section 147-A of the Income Tax Act, 1961. (Question of law and procedure) Assessee's Contention: Not explicitly recorded, but the filing of the I.A. by the respondent implies the assessee's original challenge was to the proceedings under Section 147-A. Revenue's Contention: The respondent/Income Tax Department argued that the Supreme Court's decision necessitates the recall of the earlier order to allow the petitioner to question the constitutional validity of Section 147-A of the Income Tax Act, 1961, as permitted by the Supreme Court.

Which sections of the Income-tax Act were involved?

Section 147-A

AI-generated summary — verify with the full judgment below

HIGH COURT FOR THE STATE OF TELANGANA MAIN CASE No: W.P.No.33454 of 2024

PROCEEDINGS SHEET Sl. No. Date ORDER OFFICE NOTE 2 28.10.2026 HACJ (PSK,J) & NNR,J Counsel for the petitioners: Mr. Thanneru Chaitanya Kumar, learned counsel for the petitioner.

I.A.No.1 of 2026

I.A.No.1 of 2026 is filed by the respondent/Income Tax Department seeking to recall the order, dated 28.04.2025, in W.P.No.33454 of 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 the Income 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

Transferred to i/o folder, before corrections, if any.

2 recalling the order dated 28.04.2025 has also been made out.

Accordingly, IA No.1 of 2026 stands allowed and the earlier order stands recalled. W.P.No.33454 of 2024

List this case along with W.P.Ṇo.35311 of 2026 and other connected matters on 11.11.2026 before an appropriate Bench as per roster in the light of amendment and challenge made to the vires of the provisions contained in Section 147-A of the Income Tax Act, 1961.

Meanwhile, there shall be interim stay of the impugned order in the light of the order passed by the Hon’ble Supreme Court in Civil Appeal No.004716 of 2026 and batch (arising out of SLP (C) No. 014521 of 2026 and batch; Diary No.2196 of 2026 and batch) decided on 10.04.2026.

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HACJ (PSK,J)

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NNR, J ES

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