M/s. Dr. Reddys Laboratories Limited vs. The Assistant Commissioner of Income Tax and another

PDF · subscribers
WP/3902/2023HC TelanganaHBHC01007221202321 September 2023Bench: P.SAM KOSHY,LAXMI NARAYANA ALISHETTY2 pages
AI SummaryPartly Allowed

What did the High Court hold?

The High Court held that the impleadment of proposed respondents in I.A. No. 1 of 2026 was necessary for the adjudication of the writ petition, which challenges the vires of Section 147-A of the Income Tax Act, 1961. Consequently, the application was allowed. Similarly, I.A. No. 2 of 2026, seeking amendment of the prayer in the writ petition, was allowed for the reasons stated in the supporting affidavit, with directions for amendment within ten days. The Court also granted an interim stay of the impugned order, referencing a decision of the Hon'ble Supreme Court in Civil Appeal No. 004716 of 2026 and batch. The writ petition, as amended, is to be listed with connected matters on 11.11.2026. The Court also directed for the cause list to reflect the name of Ms. J. Sunitha as Senior Standing Counsel for the Income Tax Department.

What were the facts?

The petitioner, represented by Sri M. Venkatram Reddy, filed a writ petition challenging the vires of Section 147-A of the Income Tax Act, 1961. The Income Tax Department is represented by Ms. J. Sunitha, learned Senior Standing Counsel. The case involves interlocutory applications: I.A. No. 1 of 2026 seeking to implead proposed respondents, and I.A. No. 2 of 2026 seeking amendment of the prayer in the writ petition. The High Court allowed both interlocutory applications. The writ petition is to be listed along with other connected matters on 11.11.2026 before an appropriate Bench. An interim stay of the impugned order was granted in light of a Supreme Court decision.

What were the issues?

1. Whether the interlocutory application seeking impleadment of proposed respondents is necessary and should be allowed, considering the challenge to the vires of Section 147-A of the Income Tax Act, 1961? - Assessee's contention: Impleadment is necessary for a complete adjudication of the challenge to the statutory provision. - Revenue's contention: Not recorded. 2. Whether the interlocutory application seeking amendment of the prayer in the writ petition should be allowed? - Assessee's contention: Amendment is necessary for properly framing the challenge. - Revenue's contention: Not recorded. 3. Whether an interim stay of the impugned order is warranted pending further proceedings, in light of the Supreme Court's decision in Civil Appeal No. 004716 of 2026 and batch?

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.3902 of 2023 PROCEEDING SHEET Sl. No. Date ORDER OFFICE NOTE 4. 28.10.2026 HACJ (PSK,J) & LNA,J

Counsel for the petitioner : Sri M.Venkatram Reddy

Counsel for the respondents : Ms. J.Sunitha,

learned Senior Standing

Counsel for Income Tax

Department.

I.A.No.1 of 2026

This interlocutory application seeking to implead the proposed respondents in the writ petition is taken up.

Since the challenge in the writ petition is to the vires of the provisions contained in Section 147-A of the Income Tax Act, 1961, impleadment of the proposed respondents is necessary. In view of the same, we are inclined to allow the present interlocutory application.

Accordingly, this interlocutory application stands allowed. I.A.No.2 of 2026

This interlocutory application seeking amendment of prayer in the writ petition is taken up.

For the reasons stated in the supporting affidavit, this interlocutory application is allowed.

Let the amendment be carried out within a period of ten days. W.P.No.3902 of 2023

List this case along with W.P.Ṇo.35311 of 2026 and other connected matters on 11.11.2026 before

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

2 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.

Registry is directed to reflect the name of Ms. J.Sunitha, learned Senior Standing Counsel for Income Tax Department in place of learned counsel Ms. Sundari R.Pisupati in the cause list. _______________ HACJ (PSK,J)

_______________ LNA,J vs

More judgments on Section 147-A

All 43 judgments and leading authorities on Section 147-A →

Recent GST High Court judgments

Search GST case law →