PRIMARY AGRICULTURAL CO OPERATIVESOCIETY LTD vs. The Income Tax Officer

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WP/33723/2024HC TelanganaHBHC01065200202428 April 2025Bench: P.SAM KOSHY,NARSING RAO NANDIKONDA4 pages
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What did the High Court hold?

The High Court, in its order dated September 7, 2026, listed the Writ Petition along with a batch of similar cases. Crucially, it granted an interim stay on the impugned assessment order. This stay was granted in light of an order passed by the Hon'ble Supreme Court in Diary No. 2196 of 2026 and batch, decided on April 10, 2026. The High Court did not decide the merits of the case at this stage but provided interim relief to the petitioner by staying the operation of the assessment order. The specific grounds of challenge, including the alleged arbitrariness, illegality, and violations of natural justice and constitutional provisions, were not adjudicated upon in this interim order. The operative direction was to list the matter with a batch and grant an interim stay.

What were the facts?

The petitioner, PRIMARY AGRICULTURAL CO OPERATIVE SOCIETY LTD, represented by its CEO, challenged an assessment order dated March 31, 2023, passed by the National Faceless E-Assessment Centre. This order, purportedly under Section 147 read with Section 144 and 144B of the Income Tax Act, 1961, for Assessment Year 2018-19, determined the total income at Rs. 8,23,53,800/-. The petitioner sought to declare this order arbitrary, illegal, without jurisdiction, and violative of natural justice and constitutional provisions. The case was listed along with a batch of similar matters. An interim stay was granted on the impugned order, referencing a Supreme Court order.

What were the issues?

1. Whether the assessment order passed under Section 147 read with Section 144 and 144B of the Income Tax Act, 1961, for Assessment Year 2018-19, determining the total income at Rs. 8,23,53,800/-, 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? Assessee's Contention: The petitioner argued that the assessment order is illegal, arbitrary, and violative of natural justice and constitutional provisions. They relied on the Supreme Court's order in Diary No. 2196 of 2026 and batch decided on April 10, 2026. Revenue's Contention: 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 144B,Section 148A

AI-generated summary — verify with the full judgment below

1s447 | IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) MONDAY, THE SEVENTH DAY OF SEPTEIVBER TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA WRIT PETITION NO: 33723 OF 2024 Between: PRIIVARY AGRICULTURAL CO OPERATIVESOCIETY LTD, Rep. by the CEO IUALLESH THOTA, S/o- GANGANNA THOTA, Aged about 39 years, Occupation- Business, R/o- VILL ALOOR SARANGAPUR, ADILABAD 5041 10, Telangana, lndia. PAN- AADAP2862P, Assessment Year- 2O18-19 ...PETITIONER AND 1. The Income Tax Officer, Ward 1, Nirmal/ lncome Tax Office, Nirmal, Nirmal, Hyderabad 504101 , Telangana 2. The Principal Chief Commissioner of lncome Tax, Telangana & AP Hyderabad lT Towers, AC Guards, Masab Tank, Hyderabad 50028, Telangana 3. The Central Board of Direct Taxes, Represented by its Chairman Department of Revenue Minisitry of Finance Government of lndia, Secretariat Buildings, New Delhi-1 1 0001 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 Article 226 oI lhe 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 Faceless E-,\ssessment Centre r completed the assessment U/S 147 r.w.s 144 read with section 1448 of the lncome-tax Act Date of 31-03-2023, DIN ITBA/AST/S/14712022-2311051750181(1) for the Assessment Year 2018-19 determining the total income of Rs. 8,23,53,800/-. as arbitrary, illegal, bad in law, without jurisdiction, void-ab-initio, violativ,: of the principles of natural justice apart from being violative o1' Articles 1a, 1 9(1 Xg) and 265 of the Constitution of lndia and Sec. 148A of the lncorne 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 J SUNITHA, STANDING COUNSEL FOR INCOME 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 rSupreme Court vide its order in Diary No.2196 of 2026 and batch decided on '10.04.2026. //TRUE COPY// SD/-/ A.H.S,GOWRI SHANKAR ASSISTANT REGISTRAR \\W To, SECTION OFFICER 1. The lncome Tax Officer, Ward 1, l',lirmal/ lncome Tax Office, Nirmal, Nirmal, Hyderabad 504101, Telangana 2. The Principal Chief Commissiorrer of lncome Tax, Telangana & AP Hyderabad lT Towers, AC Guards, [Vlasab Tank, Hyderabad-500028, Telangana 3. The Chairman, Central Board of Direct Taxes, Department of Revenue Ministry of Fin:rnce Government cf India, Secretariat Buildings, New Delhi- 1 1000'l . 4. The National Faceless Assessmerrt Center, lncome Tax Department, New Delhi 5. The Secretary to the Government, Union of lndia, Department of Revenue, IMinistry of Finance, New Delhi - 11() 001 . 7. The CEO MI\LLESH THOTA, S/o GANGANNA THOTA, PRIMARY AGRICULTURA,L CO OPERATIVI:SOC|ETY LTD, Aged about 39 years,

Occupation- Business, R/o- 5041 10, Telangana, lndia. VILL ALOOR SARANGAPUR, ADILABAD B. The Section officer, Posting section, High court for the State of relangana, at Hyderabad. 9. The section officer, writ Division Bench Section, High court for the state of Telangana, at Hyderabad. 10.One CC to SRl. THANNERU CHA|TANYA KUMAR, Advocate tOpUCl ,1 1.ONE CC tO SRI. J SUNITHA, STANDING COUNSEL FOR INCOME TAX loPUcl 12.Two CD Copies DAN PB YY

HIGH COURT DATED: 0710912026 ORDER WP.No.33723 o12024 DIRECTION 2 DRAFTS I.IOTE: List along with batch ( TA s E H \ * * c g'A zo! 3 oENott2o2f D $to d€,\ ftu'

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