Santosh Kumar Agarwal vs. The Income Tax Officer

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WP/33821/2024HC TelanganaHBHC01065527202424 April 2025Bench: P.SAM KOSHY,NARSING RAO NANDIKONDA3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court allowed IA No. 1 of 2026 and recalled the order dated 24.04.2025 passed in WP No. 33821 of 2024. The Court reasoned that the Supreme Court, in its decision dated 10.04.2026 concerning faceless proceedings, had remitted all such matters to the respective High Courts, permitting petitioners to question the constitutional validity of Section 147-A of the Income Tax Act, 1961. Given that the Supreme Court itself had taken this step, the High Court found a strong case for recalling its earlier order. The Court acknowledged that it had previously granted liberty to the parties to move for revival, subject to the outcome of the Supreme Court's decisions on faceless proceedings. Since the Supreme Court had indeed remitted the matters, the High Court considered it appropriate to recall its order for fresh adjudication. The operative direction was the recall of the previous order.

What were the facts?

The Income Tax Department, through the Income Tax Officer, Ward 1, Adilabad, and the Assessment Unit, National e-Assessment Center, New Delhi, filed an interlocutory application (IA No. 1 of 2026) seeking to recall an order dated 24.04.2025 passed in Writ Petition No. 33821 of 2024. The recall was sought in light of a recent Supreme Court decision dated 10.04.2026 in a batch of matters concerning faceless proceedings, specifically Income Tax Officer, Ward 2(1), Chandigarh & Ors. v. Tej Partap Singh and connected matters. 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 subject to the outcome of Supreme Court matters on faceless proceedings.

What were the issues?

1. Whether the order dated 24.04.2025 in WP No. 33821 of 2024 should be recalled for fresh adjudication in light of the Supreme Court's decision in the faceless proceedings batch. Assessee's Contentions (Implicitly, as the application is filed by the Revenue seeking recall): The assessee (Respondent in the IA) would likely support the recall of the order, as the Supreme Court's decision opens avenues for challenging the constitutional validity of Section 147-A and the faceless assessment procedures. The previous order in WP No. 33821 of 2024 was passed before this significant Supreme Court pronouncement. Revenue's Contentions: The Revenue (Petitioner in the IA) argued that the Supreme Court's decision in the faceless batch, which remitted matters to High Courts for considering challenges to the constitutional validity of Section 147-A of the Income Tax Act, 1961, necessitates a review of the earlier High Court order. The Supreme Court's directive to allow challenges to the constitutional validity of Section 147-A and the faceless assessment scheme makes the prior disposal of WP No. 33821 of 2024 unsustainable.

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) 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 l.A. NO: 1OF 2026 IN WRIT PETITION NO: 33821 OF 2024 Between: 1. The lncome Tax Officer, ward 1, lncome Tax Department, Adilabad. 2. Assessment Unit, lncome Tax Department, National e-Assessment Center New Delhi, Room No 401 , Znd Floor, E-Ramp Jawaharlal Nehru Stadium, New Delhi 110 003 ...PETITIONERS AND Santosh Kumar Agaruval, S/o. Santhosh Agarwal, aged about 65 years, Occ Business, Rl/o 1 prop, Devender Traders, Near Railwfiy Gate, Adilabad- 504001. ...RESPONDENT Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to revive /recall the order dated 24.04.2025 in WP No 33821 of 2024 for fresh adjudication considering the Order 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 matters. This petition coming on for hearing, upon perusing the petition and the affidavit filed in support thereof and upon hearing the arguments of SRI KAMASANI SUDHAKAR REDDY, Senior SC FOR INCOME TAX, counsel for the Petitioner and

SRI HIIMANGINI SANGHI. on behalf of Respondent, The Court made the following: ORDER "l.A.No.1 of 2026 is I'rled by the respondent/lncome Tax Department seeking for the recalling the order, dated24.04.2025, in W?.No.33821 of 2024 in terms of rccent decision of the Hon'ble Supreme Court in the faceless batch r.vhich lr as decided on 10.04.2026, whereby the matters were all remitted to the respectrr e High Cor.rns. pcnnitting the petitioners therein to question the constitLrtionai raliditl olthe pror ision under Section 147-A of Income Tax Act, 196i. This Court ri hile disposing of the instant writ petition at the hrst instant, had granted the libertl to the either of the parties to move proper application for revival. subject to the outcome of the matters pending before the Hon'ble Supremc Courl pertaining to the faceless proceedings. Cir,en the firct that the Hon'ble Supreme Court has itse1l- remitted all those matters pending befbre the Hon'ble Supreme Court to the respective High Cou n s. rrVe are ol thc considered opinion that a strong case for recalling the order dated 24.04.2025 has also been made out. Accordingly, IA No.l of 2026 stands allowed and the earlier order stands recalled." //TRUE COPY// The lncome Tax Officer, ward 1, lncome Tax Departnte Adilabad Assessment Unit, lncome Tax Department, National e-Assessment Center New Delhi, Room No 401 , 2nd Floor, E-Ramp Jawaharlal Nehru Stadium, New Delhi 1 10 003 The Section Officer, The Posting Section, High Court for the State of Telangana, Hyderabad. The Section Officer, The Writ DB Section, High Court for the State of Telangana, Hyderabad One CC to SRI HIIVANGINI SANGHI, Advocate IOPUCI ff Bil%i-r KAA/ASANI SUDHAKAR REDDY, Senior SC FoR tNCoME Two CD Copies BN TKS SD/. A.H.S.GOWRI SHANKAR ASSISTANT REGISTRAR ---- ./ N OFFICER I nf \ SftTIO To, 1 2 I 3 4 5 b. 7. "lr

HIGH COURT DATED: 1110812026 ORDER l.A. NO: l OF 2026 IN WP.No.33821 ot 2024 ALLOWING THE IA., NOTE: LIST ON 27.08.2026 ALONG \['ITH BATCH c- -:--:--./ O5sEP ffi P / \tl -:-Ir I( 1 a c\

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