THE PRIMARY AGRICUTURAL COOPERATIVE CREDIT SOCIETY LIMITED ASHWARAOPET vs. The Income Tax Officer Ward 1

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WP/33530/2024HC TelanganaHBHC01064756202428 April 2025Bench: P.SAM KOSHY,NARSING RAO NANDIKONDA4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court has not decided the merits of the case. Instead, it has granted an interim stay of the impugned assessment order dated March 17, 2024. This interim relief is granted in light of an order passed by the Hon'ble Supreme Court in a batch of cases (Diary No. 2196 of 2026, decided on April 10, 2026). The High Court has listed the matter for further hearing on August 27, 2026, along with a batch of similar cases. No finding has been reached on the validity or legality of the assessment order itself, nor has any specific reasoning been provided for the interim stay beyond referencing the Supreme Court's order. The operative direction is to stay the impugned order and list the case for further hearing.

What were the facts?

The petitioner, The Primary Agricultural Cooperative Credit Society Limited, Ashwaropet, represented by its CEO, filed a writ petition before the High Court for the State of Telangana at Hyderabad. The petition challenges an assessment order dated March 17, 2024, 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 determined the total income of the petitioner at Rs. 1,01,19,750/-. The petitioner contends that this order is arbitrary, illegal, without jurisdiction, and violative of principles of natural justice and constitutional provisions. The respondents include various Income Tax authorities and the Union of India. The High Court has granted an interim stay of the impugned order.

What were the issues?

1. Whether the assessment order passed by the National Faceless E-Assessment Centre under Section 147 read with Section 144 of the Income Tax Act, 1961, for Assessment Year 2018-19, determining the total income at Rs. 1,01,19,750/-, is arbitrary, illegal, without jurisdiction, void-ab-initio, and violative of the principles of natural justice and Articles 14, 19(1)(g), and 265 of the Constitution of India and Section 148A of the Income Tax Act, 1961. Assessee's Contention: The petitioner argues that the assessment order 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. No specific authorities or precedents were mentioned in the provided text for the assessee's arguments. Revenue's Contention: The judgment does not record any specific arguments 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

134471 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE ELEVENTH 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 PETITION NO: 33530 OF 2024 Between: THE PRIMARY AGRICUTURAL COOPERATIVE CREDIT SOCIETY LIMITED ASHWARAOPET, Rep. by the CEO IVIANEPALLI VIJAYA BABU, S/o. DHARMANARAYANA MANEPALLI, Aged about 49 years, Occupation. Business, R/o. THE PRIMARY ARICULTURAL ASHWARAOPET, KHAMMAM, KAMMAM 507001, Telangana, lndia. PAN ; AADAT0733D, Assessment year: 2018-19 .....PETITIONER AND 1. The lncome Tax Officer Ward 1, Khammam/lncome Tax Office, Rajeev Gunt, Rajiv Chowk, Near Kinnerasani Theatre, Khammam, Hyderabad 507001, Telangana. 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 - 1'10 001 . 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 . .....RESPONDENTS Petition Under Artide 226 of the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased

to issue an appropriate writ, order or direction more particularly one in the nature of Writ of Mandamus, declaring the order passed by the lncome Tax Authorities (National traceless E-Assessment Centre) completed the assessment U/S 147 r.w.s 144 Date oI 17-03-2024, DIN lTBtuASrlSl147l2023- 2411062797826('1) for the Assessment Year 2018-1 9 determining the total income of Rs. 1 0, 1 1 ,97,570/-. as arbitrary, illegal, bad in law, without jurisdiction, void-ab-initio, violative of the principles of natural justice apart from being violative of Articles 14, 19(1Xg) and 265 of the Constitution of lndia and Sec. 148A 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 for the Respondents : SRI KAMASANI SUDHAKAR REDDY, LEARNED SENIOR STANDING COUNSEL FOR THE INCOME TAX DEPARTMENT The Court made the following ORDER List on 27-8-2026 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 ot2026 and batch decided on10-4-2026. SD/-M.OSMAN ALI BAIG ASSISTANT REGISTRAR //TRUE COPY/' (= SECTION 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 Principal Chief Commissioner of lncome Tax - Telangana and A.p, Hyderabad, lT Towers, AC Guards, Masab Tank, Hyderabad - 500028, Telangana. 3. The Chairman, Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Government of lndia, Secretariat Buildings, New Delhi - '1 10 001 4. The National Faceless Assessment Center, lncome Tax Department, New Delhi. 5, The Secretary to Government, Union of lndia, Department of Revenue, Ministry of Finance, New Delhi - 1 10 001 . 6. The Section Officer, Non- Service Section, High Court for the State of Telangana at Hyderabad.

SA 7. The Section Officer, Posting Section, High Court for the State of Telangana at Hyderabad. 8. One CC to SRI THANNERU CHAITANYA KUMAR, Advocate [OPUCI 9. One CC to SRI KAMASANI SUDHAKAR REDDY, LEARNED SENIOR STANDING COUNSEL FOR THE INCOME TAX DEPARTMENT Advocate loPUcl 10.Two CD Copies YL-

HIGH COURT DATED: 1110812026 ORDER WP.No.33530 of 2024 INTERIM STAY. g9 A o TE 1A S t2 $tI $lt -:;PN o i_-) .() i1 r) 'i: \ - i:.:*. ._--.-. d.<"j"k" P- c i- i

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