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

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WP/33819/2024HC TelanganaHBHC01065226202428 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 and recalled its earlier order dated 28.04.2025 in WP No. 33819 of 2024. The Court reasoned that since the Supreme Court itself had remitted the faceless proceedings matters to the respective High Courts for fresh adjudication, including the aspect of questioning the constitutional validity of Section 147-A of the Income Tax Act, 1961, a strong case for recalling the earlier order was made out. The High Court had previously kept the option open for parties to seek revival of the writ petition, contingent on the Supreme Court's decision. Given the Supreme Court's directive, the High Court found it appropriate to recall its previous order to permit fresh adjudication. The operative direction was the allowance of the interlocutory application and the recall of the prior order.

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, seeking to recall an earlier order dated 28.04.2025 passed in Writ Petition No. 33819 of 2024. The original writ petition was filed by the Primary Agricultural Cooperative Society Ltd. Echoda (Respondent). The recall was sought in light of a recent Supreme Court decision dated 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 granted liberty to the parties to seek revival of the writ petition subject to the outcome of the Supreme Court matters.

What were the issues?

1. Whether the High Court should recall its earlier order dated 28.04.2025 in WP No. 33819 of 2024, in light of the Supreme Court's decision dated 10.04.2026 in faceless proceedings matters. (Question of law) The Petitioners argued that the Supreme Court's decision, which remitted matters to High Courts for adjudication on the constitutional validity of Section 147-A of the Income Tax Act, 1961, necessitates the recall of the earlier High Court order. They relied on the liberty granted by the High Court to seek revival. The Respondent did not record any specific arguments against the recall in the provided text, but their presence as respondent implies they were heard.

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 (Special Original Jurisdiction) 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 t.A.NO.1 0F 2026 IN WRIT PETITI ON NO: 33819 0F 2024 Between: AND 1. The lncome Tax Officer Ward 1, Adilabad- 504001 ' 2. The Principal Chief Commissioner of lncome Tax, Telangana and A P Hyderabad, lT Towers, AC Guards, Masab Tank' Hyderabad' 3. The National Faceless Assessment center, lncome Tax Department, New Delhi 4. The Central Board of Direct Taxes, Represented by its Chairman' Department ofRevenue,MinistryofFinance,Governmentoflndia,SecretariatBuildings' New Delhi - 110 001 . 5. The Union of lndia, Represented by its Secretary to the Government' Department of Revenue, Ministry of Finance, New Delhi - 1 10 001 ' ...PETITIONERS Primary Agricultural Cooperative Society Ltd Echoda' Rep by the CEO Rathod ein*ri, S]o. Parushram Rathod, Aged about 53 years' Occupation Business' R/o. Echoda, Adilabad -504307 ...RESPONDENTS Petition under section 151 CPC praying that in the circumstances stated in the affidavitfiledinsupportofthepetition,theHighCourtmaybepleasedtorevive/recall the order dated 28.O4.2025 in wP No 338'19 of 2024 for fresh adjudication considering the Order dated '10.04.2026 passed by the Hon'ble Supreme Court in

lncome Tax Offrcer, Ward 2(1), Chandigarh & Ors v connected batch matters. Tej Partap Singh and This pelition coming on for hearing, upon perusing the petition and l\,4emorandum of Grounds filed in the support thereof and i:pon reading the order dated 28.04 2025 in WP No 33819 of 2024 and upon hearing the arguments of IVS J. SUNITHA appearing on behalf of the Petitioners and SRI' THANNERU CHAITANYA KUMAR, appearing on behalf of the Responclents The Court made the following: ORDER l.A.No.1 of 2026 is filed by the respondenUlncome Tax Department seeking for the recalling the order, dated 28.04.2025, in wP.No.33819 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 thg 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 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 recalling 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. SD/. P.C.SULEKHA DEVI //TRUE COPY// CTION OFFICER 1. The lncome Tax Officer Ward 1, Adilabad- 504001. 2. The Principal Chief Commissioner of lncome Tax, Telangana and A P Hyderabad. lT Towers. AC Guards, Masab Tank Hyderabad To, I SISTANT REGISTRAR

3.

The National Faceless Assessment Center, lncome Tax Department, New Delhi 4. The Chairman, The Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Government of lndia, Secretariat Buildings, New Delhi - 1 10 001 . 5. The Secretary to the Government, The Union of lndia, Oepartment of Revenue, Ministry of Finance, New Delhi - 110 001 . 6. One CC to Sri Thanneru Chaitanya Kumar, Advocate [OPUC] 7. One CC to Ms. J. Sunitha (JUNIOR SC FOR INCOME TAX) [OPUC] 8. Two CD Copies TJ TKS +J-

HIGH COURT Two drafts DATED: 2810412025 ORDER !.A.NO.1 0F 2026 IN WP.No.33819 of 2024 ALLOWING THE I.A.NO.1 OF 2026 53 1D $P z02t is. E STA T Dfspl,-iC',' F ,r z. l5 * * (6: - nli- t'/",l,{

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