PRIMARY AGRICULTURAL COOPERATIVE SOCIETY LTD vs. The income Tax Officer

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WP/34336/2024HC TelanganaHBHC01066532202428 April 2025Bench: P.SAM KOSHY,NARSING RAO NANDIKONDA2 pages
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What did the High Court hold?

The High Court allowed I.A.No.1 of 2026, thereby recalling its earlier order dated 28.04.2025. The Court reasoned that the Supreme Court's decision to remit matters to High Courts for challenging the constitutional validity of Section 147-A of the Income Tax Act, 1961, created a strong basis for recalling the previous order. The Court noted that its earlier order disposing of the writ petition had already provided liberty to the parties to seek revival based on the outcome of Supreme Court proceedings. Consequently, the Court ordered that W.P.No.34336 of 2024 be listed along with other connected matters for hearing on 11.11.2026 before an appropriate Bench. Additionally, an interim stay of the impugned order was granted in light of the Supreme Court's decision in Civil Appeal No.004716 of 2026 and batch, decided on 10.04.2026.

What were the facts?

The Income Tax Department (Revenue) filed an interlocutory application (I.A.No.1 of 2026) seeking to recall an earlier order dated 28.04.2025 in W.P.No.34336 of 2024. The recall was sought in light of a Supreme Court decision on 10.04.2026 concerning faceless proceedings, which remitted matters to High Courts to permit petitioners to challenge the constitutional validity of Section 147-A of the Income Tax Act, 1961. The High Court had previously granted liberty to parties to seek revival of the writ petition subject to the outcome of Supreme Court matters. The Revenue argued that the Supreme Court's remittance created a strong case for recalling the earlier order.

What were the issues?

1. Whether the order dated 28.04.2025 in W.P.No.34336 of 2024 should be recalled, considering the Supreme Court's decision on faceless proceedings and the remittance of related matters to High Courts for challenging Section 147-A of the Income Tax Act, 1961. Assessee's Contention: The judgment does not record any specific contentions made by the assessee (petitioner) in this application. The High Court's previous order had granted liberty to move for revival, subject to the Supreme Court's outcome. Revenue's Contention: The Revenue contended that the Supreme Court's decision on 10.04.2026, which remitted matters to High Courts to allow challenges to the constitutional validity of Section 147-A, made out a strong case for recalling the earlier order. The Revenue relied on the Supreme Court's decision in the 'faceless batch' of cases.

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.34336 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.34336 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.34336 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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