M/s. Dr. Reddys Laboratories Limited vs. THE ASST COMMISSIONER OF INCOME TAX

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WP/4073/2023HC TelanganaHBHC01007226202321 September 2023Bench: P.SAM KOSHY,LAXMI NARAYANA ALISHETTY2 pages
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What did the High Court hold?

The High Court allowed I.A. No. 1 of 2026, finding the impleadment of proposed respondents necessary for adjudicating the challenge to the vires of Section 147-A of the Income Tax Act, 1961. The Court also allowed I.A. No. 2 of 2026, permitting the amendment of the prayer in the writ petition, with directions for the amendment to be carried out within ten days. The case was subsequently listed for hearing on 11.11.2026, along with connected matters, before an appropriate Bench, considering the amendment and the challenge to the vires of Section 147-A. The Court also granted an interim stay of the impugned order, referencing a Supreme Court decision in Civil Appeal No. 004716 of 2026 and batch.

What were the facts?

The petitioner, represented by Sri M. Venkatram Reddy, filed Writ Petition No. 4073 of 2023 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. An interlocutory application (I.A. No. 1 of 2026) was filed to implead proposed respondents, which was allowed as necessary for the challenge to the provision. Another interlocutory application (I.A. No. 2 of 2026) sought amendment of the prayer in the writ petition, which was also allowed, with the amendment to be carried out within ten days. The case was directed to be listed along with other connected matters on 11.11.2026 before an appropriate Bench.

What were the issues?

1. Whether the challenge to the vires of Section 147-A of the Income Tax Act, 1961, necessitates the impleadment of proposed respondents? (Question of procedure/law) 2. Whether the prayer in the writ petition requires amendment? (Question of procedure) Assessee's Contentions: The assessee (petitioner) sought to implead proposed respondents, arguing their necessity for the challenge to the vires of Section 147-A. The assessee also sought to amend the prayer in the writ petition. Revenue's Contentions: No specific contentions were recorded for the revenue regarding the interlocutory applications. However, Ms. J. Sunitha, learned Senior Standing Counsel for the Income Tax Department, appeared for the respondents.

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.4073 of 2023 PROCEEDING SHEET Sl. No. Date ORDER OFFICE NOTE 3. 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.4073 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 Sri J.V.Prasad in the cause list. _______________ HACJ (PSK,J)

_______________ LNA,J vs

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