M/s Suguna Educational Society vs. Assessment Unit

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WP/36674/2024HC TelanganaHBHC01071116202428 April 2025Bench: P.SAM KOSHY,NARSING RAO NANDIKONDA2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court held that a strong case for review of its earlier order dated 28.04.2025 in Writ Petition No. 36674 of 2024 had been made out. This was based on the Supreme Court's decision in the faceless batch of cases, which remitted matters to the respective High Courts to permit petitioners to question the constitutional validity of Section 147-A of the Income Tax Act, 1961. Consequently, the interlocutory application for review was allowed, and the earlier order was recalled. The Court also allowed the application to dispense with the certified copy of the impugned order. The writ petition was then listed for hearing on 11.11.2026 with connected matters, and an interim stay of the impugned order was granted, referencing the Supreme Court's order in Civil Appeal No.004716 of 2026 and batch.

What were the facts?

The Income Tax Department (Revenue) filed an interlocutory application (Review I.A.No.1 of 2026) seeking to review an order dated 28.04.2025 passed in Writ Petition No. 36674 of 2024. The review was sought in light of a Supreme Court decision on 10.04.2026 concerning faceless proceedings, which remitted matters to 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 granted liberty to parties to move for revival subject to the outcome of Supreme Court matters. The Court found a strong case for review and allowed the application, recalling the earlier order. Another application (I.A.No.2 of 2026) to dispense with the certified copy of the impugned order was also allowed. The writ petition was then listed for hearing on 11.11.2026 with other connected matters, and an interim stay of the impugned order was granted.

What were the issues?

1. Whether the High Court should review its earlier order dated 28.04.2025 in Writ Petition No. 36674 of 2024, in light of the Supreme Court's decision in the faceless batch of cases decided on 10.04.2026, which remitted matters to High Courts for questioning the constitutional validity of Section 147-A of the Income Tax Act, 1961? (Question of law and procedure) Assessee (Petitioner): The judgment does not record specific arguments from the assessee regarding the review application. However, the initial writ petition likely challenged the proceedings under Section 147-A. Revenue (Respondent): The Revenue sought review of the earlier order to align with the Supreme Court's directive, allowing the challenge to the constitutional validity of Section 147-A of the Income Tax Act, 1961, and to permit the matter to be heard afresh in light of the Supreme Court's decision. They relied on the Supreme Court's decision in the faceless batch of cases decided on 10.04.2026.

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.36674 of 2024

PROCEEDINGS SHEET Sl. No. Date ORDER OFFICE NOTE 2. 28.10.2026 HACJ (PSK,J) & NNR,J Counsel for the review petitioners: Mr. A.V.A. Siva Kartikeya.

Review I.A.No.1 of 2026

This interlocutory application is filed by the Income Tax Department, who are respondents in the writ petition, seeking to review the order dated 28.04.2025 passed in the writ petition 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 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

Transferred to i/o folder, before corrections, if any.

2 are of the considered opinion that a strong case for review has been made out.

Accordingly this interlocutory application is allowed and the earlier order stands recalled. I.A.No.2 of 2026

This interlocutory application seeking to dispense with filing of the certified copy of the impugned order is allowed. W.P.No.36674 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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