PRIMARY AGRICUTURAL COOPERATIVE SOCIETY LTD MANNOOR vs. The Income Tax Officer Ward 1

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WP/33509/2024HC TelanganaHBHC01064768202428 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 28.04.2025. This decision was based on the fact that the Supreme Court itself had remitted matters pending before it to the respective High Courts. The Supreme Court's order, in the 'faceless batch' decided on 10.04.2026, permitted petitioners to question the constitutional validity of Section 147-A of the Income Tax Act, 1961. Given this development and the earlier liberty granted by the High Court to move for revival, the Court found it appropriate to recall its previous order. The operative direction was that I.A. No. 1 of 2026 stands allowed and the earlier order stands recalled.

What were the facts?

The Income Tax Department (Petitioners) filed an interlocutory application (I.A. No. 1 of 2026) before the High Court for the State of Telangana at Hyderabad. They sought to recall an earlier order dated 28.04.2025 passed in Writ Petition No. 33509 of 2024. The basis for this application was a subsequent decision of the Supreme Court on 10.04.2026 in a batch of matters concerning faceless proceedings. The Supreme Court had remitted these matters to the 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 outcome of Supreme Court matters.

What were the issues?

1. Whether the High Court should recall its earlier order dated 28.04.2025 in WP No. 33509 of 2024, in light of the Supreme Court's decision dated 10.04.2026 concerning faceless proceedings and the constitutional validity of Section 147-A of the Income Tax Act, 1961. Assessee (Respondent) Arguments: The respondent did not file any separate arguments in the provided text, but their counsel appeared. The application for recall was filed by the Income Tax Department (Petitioners). Revenue (Petitioners) Arguments: The petitioners argued that the Supreme Court's decision on 10.04.2026, which remitted matters to High Courts and permitted challenges to the constitutional validity of Section 147-A, necessitated the recall of the earlier High Court order. They relied on the Supreme Court's order in the 'faceless batch' of cases decided on 10.04.2026.

Which sections of the Income-tax Act were involved?

Section 147-A

AI-generated summary — verify with the full judgment below

13447 | IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD 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 I.A.NO.1 0F 2026 IN WRIT PETITI ON NO: 33509 0F 2024 Between: 1. The lncome Tax Officer Ward 1, Adilabad 504001. 2. The Principal Chief Commissioner of lncome Tax Telangana and AP' 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 Cooperative Society Ltd Mannoor, Rep by the CEO Venkateshwar Dhanure, S/o. Datta Dhanure, Aged about 45 years' Occupation. Business, R/o. D NO 7-27 [\,4annoor, Gudihathnur Adilabad 504308. ...RESPONDENT Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in suppo( of the petition, the High court may be pleased to revive/recall the order dated 28.04.2025 in wP No 33509 of 2024 for fresh adjudication

considering the ordr:r 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 ma ers. This petition coming on for hearing, upon perusing the petition and lVlemorandum of Grc unds filed in the support thereof and upon reading the order dated 28.04.2025 in \v.P.No.33509 of 2024 and upon hearing the arguments of M/s. J. SUNITHA, apper.ng on beharf of the petitioners and sRr THANNERU CHAITANYA KUMAll, appearing on beharf of the Respondents The court made the following: ORDE R l.A.No.1 ot 2026 is fired by the respondenurncome Tax Department seeking for the recatling the order, dated 28.04.2025, in wp.No.33509 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 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 perta ining to the faceless proceedings. Given the fact that the Hon'ble Supreme court has itself remitted a those matters pending before the Hon'bre supreme court to the respective High courts, we are of the considered opinion that a strong case for recaling the order dated 28.04.2025 has also been made out. Accordingly, lA No.1 of 2026 stands allowed and the earlier order stands recalled. //TRUE COPY// SD/. S. MALLIKARJUNA RAO ASSISTANT REGISTRAR € SECTION OFFICER 1 To, The lncome Tax Officer Ward 1, Adilabad 50400i.

2.

The Principal Chief Commissioner of lncome Tax Telangana and AP, 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 Govemment of lndia, Secretariat Buildings, New Delhi 110 001 4. The National Faceless Assessment Center, lncome Tax Department, New Delhi. 5. The Secretary to the Government, The Union of lndia, Department of Revenue, I\,4inistry of Finance, New Delhi 110 00i 6. Venkateshwar Dhanure, S/o. Datta Dhanure, The CEO, Primary Agricultural Cooperative Society Ltd Mannoor, Aged about 45 years, Occupation. Business, R/o. D NO 7-27 Mannoor, GudihathnurAdilabad 504308. 7. One CC to Sri Thanneru Chaitanya Kumar, Advocate [OPUC] 8. One CC to M/s. J. Sunitha (JUNIOR SC FOR INCOME TAX) IOPUCI 9. Two CD Copies TJ CJP ,e

HIGH COURT 2 DRAFTS DATED: 07l1tgl2026 ORDER l.A.NO.1 of 2026 IN WP.No.3350!t of 2024 ALLOWING THI I.A. -i aE STar4- c .-) ;l 4 stP 2026 ai \\-. \,. . ,. e :.,1 i I ,rlql rt

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