LARGE SIZED COOPERATIVE CREDIT SOCIETY LIMITED vs. The Income Tax Officer Ward 1

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WP/33491/2024HC TelanganaHBHC01064764202428 April 2025Bench: P.SAM KOSHY,NARSING RAO NANDIKONDA4 pages
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What did the High Court hold?

The High Court did not decide the merits of the case. Instead, it granted an interim stay of the impugned assessment order. This decision was made in light of an order previously passed by the Hon'ble Supreme Court in a related matter. The High Court directed that the matter be listed along with a batch of similar cases. The operative direction was to provide an interim stay on the assessment order dated 24.03.2024, which determined the total income at Rs. 22,86,41,547/- for the Assessment Year 2018-19. No finding was reached on the validity or legality of the assessment order itself, as the court is yet to adjudicate the writ petition on its merits. The issue of whether the assessment order is arbitrary, illegal, or violative of any provisions was expressly left undecided at this stage.

What were the facts?

The assessee, Large Sized Cooperative Credit Society Limited, filed a writ petition before the High Court for the State of Telangana at Hyderabad. The petition challenges an assessment order passed by the National Faceless E-Assessment Centre under Section 147 read with Section 144 of the Income Tax Act, 1961, for the Assessment Year 2018-19. The assessment order, dated 24.03.2024, determined the total income at Rs. 22,86,41,547/-. The assessee contends that this order is arbitrary, illegal, without jurisdiction, and violative of natural justice and constitutional provisions. The High Court, considering an order from the Supreme Court, granted an interim stay of the impugned order.

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 is arbitrary, illegal, bad in law, 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, for the Assessment Year 2018-19. Assessee's Contentions: The assessee argues that the assessment order is flawed on multiple grounds, including arbitrariness, illegality, lack of jurisdiction, and violation of natural justice principles. They also claim it violates constitutional provisions (Articles 14, 19(1)(g), 265) and Section 148A of the Act. The assessee seeks to have the order set aside. Revenue's Contentions: The judgment does not record any specific contentions made by the revenue.

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 148A

AI-generated summary — verify with the full judgment below

5 Between: LARGE SIZED COOPERATTVE CREDTT SOC|ETY L|M|TED, Rep. by the CEO AKULA NAGESWARA RAO, S/o- SUBBA RAO AKULA, ngeO aOoui OO Vear", Occupation- Business, Rl/o- DAMI\IAPETA, KAM|VAM, KAMMAM SAZnOt, Telangana, lndia. Assessment year- 2O1g-19 AND ...PETITIONER IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD MONDAY, THE THIRTY FIRST 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 PETITI ON NO:33491 OF 2024 1. The lncome Tax officer ward 1, Khammam, rncome Tax office, Rajeev Gunt, Rajiv Chowk, Near Kinnerasani Theatre, Khammam, Hyderabad 507001, Telangana. 2. The Principal chief commissioner of rncome Tax - Terangana and A.p, Hyderabad, lT Towers, AC Guards, Masab Tank, Hyderabad _ 5OOO2g. Telangana. 3 The central Board of Direct raxes, Represented by its chairman, Department of Revenue, Ministry of Finance, Government of rndia, secretariat Buildings, New Delhi - 110 001 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 - 110 OO1 . ...RESPONDENTS Petition under Arlicle 226 of the constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High court may be pleased

6 to issue an appropnate writ, 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- Assessment Centre) completed the assessment U/S 147 r.w.s 144 Date of 2410312024, DIN ITBA/ASTlsl14712023-2411063303499(1) for the Assessment Year 2018-19 determining the total income of Rs. 22,86,41 ,5471-. as arbitrary, illegal. bad rn law, without jurisdiction, void-ab-initio, violative of the principles of natural lustice apart from being violative of Articles 14, 19(1)(g) and 265 of the Constitution of lndia and Sec. 1484 of the lncome Tax Act, 1961, and consequently set aside the same in the interests of justice Counsel for the Petitioner: Sri. Thanneru Chaitanya Kumar Counsel forthe Respondents: Ms. KAMASANI SUDHAKAR REDDY (Sr. Sc For lncome Tax) The Court made the following:ORDER List along with batch. Meanwhile, there shall be interim stay of the impugned order, in the light of the order granted by the Hon'ble Supreme Court vide its order in Diary No. 2196 of 2026 and batch decided on 10.04.2026 SD/- L.VIJAYA LAXMI ASSISTANT REGISTRAR ,TRUE COPY' CTION OFFICER To, 1. The lncome Tax Officer Ward 1, Khammam, lncome Tax Office, Rajeev Gunt, Rajiv Chowk. Near Kinnerasani Theatre, Khammam, Hyderabad 507001, Telangana. 2. The Principa Chief Commissioner of lncome Tax - Telangana and A.P, Hyderabad, lT Towers, AC Guards, It4asab Tank, Hyderabad - 500028, Telangana. 3. The Chairman, Central Board of Direct Taxes, Department of Revenue, IVlinistry of Finance, Government of India, Secretariat Buildings, New Delhi - '1 '10001. 4. The National Faceless Assessment Center, Income Tax Department, New Delhi. 5 The Secretary to the Government, Union of rndia, Department of Revenue, I\,4inistry of Finance, New Delhi - I 10 001 .

7 6. The Section officer, writ Division Bench, section High court for the state of Telangana, Hyderabad 7. The Section Officer, Posting Section , High Court for the State of Telangana , Hyderabad 8. One CC to SRl. THANNERU CHA|TANYA KUMAR Advocate IOPUC] 9. One CC to SRI. KAMASANI SUDHAKAR REDDY, SENIoR Sc Ton rNCOtvE TAX [OPUC] 'l0.Two CD Copies Bm TKS t t,- -f41

8 2 DRAFTS HIGH COURT DATED: 3110812026 ORDER WP.No.33491 of 2024 INTERIM STAY -'::= (ia' STii I E oF * Dispp.i Lr;1 1o siP zffi €5o 72o5 .! <( rlP) \-/ | ,\l I 0

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