PRIMARY AGRICUTURAL COOPERATIVE SOCIETY vs. The Income Tax Officer

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WP/33782/2024HC TelanganaHBHC01065236202428 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, in its decision dated 10.04.2026 concerning the faceless batch of cases, had remitted all such matters to the respective High Courts to permit petitioners to question the constitutional validity of Section 147-A of the Income Tax Act, 1961. Given this development, the Court found a strong case for recalling its previous order. The Court directed that W.P.No.33782 of 2024 be listed along with other connected matters before an appropriate Bench on 11.11.2026, in light of the amendment and challenge to the vires of Section 147-A. An interim stay of the impugned order was also granted, 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 application (I.A.No.1 of 2026) seeking to recall an earlier order dated 28.04.2025 passed in W.P.No.33782 of 2024. The recall was sought in light of a recent Supreme Court decision on 10.04.2026 concerning faceless proceedings, which remitted matters to respective High Courts to allow 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 subject to the outcome of Supreme Court matters. The Court found a strong case for recalling the order given the Supreme Court's remittance.

What were the issues?

1. Whether the order dated 28.04.2025 in W.P.No.33782 of 2024 should be recalled, in light of the Supreme Court's decision dated 10.04.2026 in the faceless batch of cases, which remitted matters to High Courts to consider the constitutional validity of Section 147-A of the Income Tax Act, 1961. Assessee (Petitioner) Contentions: Not recorded in the judgment. Revenue (Respondent) Contentions: The respondent/Income Tax Department argued that the Supreme Court's decision in the faceless batch of cases, decided on 10.04.2026, remitted matters to the respective High Courts, permitting petitioners to question the constitutional validity of Section 147-A of the Income Tax Act, 1961. Therefore, the earlier order of this Court should be recalled to allow for such a challenge.

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.33782 of 2024

PROCEEDINGS SHEET Sl. No. Date ORDER OFFICE NOTE 2 28.10.2026 HACJ (PSK,J) & NNR,J Counsel for the petitioners: Ms. J. Sunitha, learned Senior Counsel Standing Counsel for Income Tax Department.

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.33782 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.33782 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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