M/s. The Large Sized Cooperative Society Limited, vs. Assessment Unit, Income Tax Department,

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WP/9829/2025HC TelanganaHBHC01019737202524 April 2025Bench: P.SAM KOSHY,NARSING RAO NANDIKONDA4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court, in its order dated 17.08.2026, did not decide the merits of the case. Instead, it granted an interim stay of the impugned order. The Court noted that this interim stay was granted in light of an order passed by the Hon'ble Supreme Court in Diary No. 2196 of 2026 and batch, decided on 10.04.2026. The matter was listed for further hearing on 27.08.2026, along with a batch of similar cases. Therefore, no findings were made on the issues raised by the petitioner regarding jurisdiction, procedural violations, or constitutional validity. The operative direction was to grant an interim stay of the impugned order pending further consideration.

What were the facts?

M/s. The Large Sized Cooperative Society Limited (the petitioner) filed a writ petition before the High Court for the State of Telangana at Hyderabad challenging notices and orders issued by the Income Tax Department for Assessment Year 2020-21. The petitioner sought to declare the notice under Section 148A(b) dated 02.02.2024, the order under Section 148A(d) dated 21.03.2024, and the notice under Section 148 dated 22.03.2024, as being without jurisdiction and contrary to the faceless assessment procedure under Section 144B. Additionally, the petitioner sought to set aside consequential notices and orders issued by the Assessment Unit under Sections 142(1) and 147 read with Sections 144 and 144B, alleging them to be without jurisdiction, arbitrary, illegal, void-ab-initio, and violative of constitutional provisions. The petitioner also sought an interim stay of further proceedings.

What were the issues?

1. Whether the notice issued by the 2nd Respondent under Section 148A(b) dated 02.02.2024, the order passed under Section 148A(d) dated 21.3.2024, and the notice under Section 148 dated 22.3.2024 for the assessment year 2020-21 are without jurisdiction and contrary to the faceless assessment procedure laid down in Section 144B of the Income Tax Act, 1961. 2. Whether the consequential notice issued by the 1st Respondent under Section 142(1) dated 28.02.2025 and the consequential order issued under Section 147 read with Sections 144 and 144B dated 28.2.2025 for the assessment year 2020-21 are without jurisdiction, arbitrary, illegal, bad in law, void-ab-initio, and violative of Articles 14, 19(1)(g) and 265 of the Constitution of India and contrary to the faceless assessment procedure under Section 144B. Assessee's Contention: The petitioner argued that the impugned notices and orders were issued without jurisdiction and were contrary to the faceless assessment procedure prescribed under Section 144B of the Income Tax Act, 1961. They also contended that these actions were arbitrary, illegal, and violative of constitutional provisions. Revenue's Contention: The judgment does not record any specific contentions made by the respondents.

Which sections of the Income-tax Act were involved?

Section 148A,Section 148,Section 142(1),Section 147,Section 144,Section 144B

AI-generated summary — verify with the full judgment below

I3M7l IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) MONDAY, THE SEVENTEENTH DAY OF AUGUST TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTIGE NARSING RAO NANDIKONDA WRIT PETITION NO: 9829 OF 2025 Between: M/s. The Large Sized Cooperative Society Limited, rep. by its Secretary, Mr. Pitla Shivaji, Pothangal, Kotagiri, Nizamabad-503 207, Telangana. (PAN: AADFT3295M) ...PETITIONER AND 1. Assessment Unit, lncome Tax Department, National e-Assessment Center, Room No.401 , 2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, New Delhi-'l 10 003. 2. lncome Tax Officer, Ward - 1 , Aayakat Bhavan, 6-2-15613, Subhash Nagar, Nizamabad 503002. 3. Principal Chief Commissroner of lncome Tax, Andhra Pradesh and Telangana, Hyderabad, #10-2-3, Room No.922, 9th Floor, 'B' Block, lT Towers, AC Guards, Hyderabad-SO0 004 4. Union of lndia, rep. by its Secretary, Ministry of Finance, Government of lndia, 3rd Floor, Jeevan Deep Building, Sansad Marg, New Delhi-110 001. ...RESPONDENTS Petition under Afticle 226 of the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a Writ of Mandamus or any other appropriate writ, order or direction- (a) declaring the notice issued by the 2nd Respondent under Section 148A(b) dated 02.02.2024, bearing DIN: ITBtuAST/F/1 48A(SCNy2023-241 1060427539( 1 ) and order passed by 2nd Respondent under Section 148A(d) dated 21.3.2024, bearing DIN: ITBA/AST/F/I48N2023-241 1063079959(1) and notice under Section 148 of the lncome Tax Act, 1961 , dated 22.3.2024, bearing DlN.

ITBA/AST/S/148_112023-2411063145811(1) for the assessrlent year 2020-21 as being without jurisdiction and contrary to faceless assessmelt procedure laid down in Section '1448 of the lncome Tax -Act 1961 and consequent y and (b) to selaside (i) the consequential notice issued b/ the 1st Respondent, under Section 142(1) of the lncome Tax Act, 196'1, dak:d 28.02.2025 bearing 05 11.2024, bearing DIN ITBA/ASTlF1142(1)12024-25fi070117086(1); and (ii) the consequential order issued by the 1st Respondent, under Section 147 read with Sections 144 and Section 1448 of the lncome Tax Act, 196'1 , dated 28.2.2025 bearing DlN. ITBA/AST/S/14712024-2511073834530(1) for the assessment year 2O2O-21 as being without Jurisdiction, arbitrary, iilegal, bad in law, void-ab-initio, apart from being vrolative of Articles 14, 19(1Xg) and 265 of the Constitution of lndia and contrary to faceless assessment procedure laid down n Section 144B of the lncome Tax Act 1961, and consequently set-aside the same. l.A. NO: 1OF 2025 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may b-. pleased to grant stay of all further proceedings, including any recovery, pursuant to the impugned order dated 28.2.2025 issued by the 1st Respondent, under S;ection 147 read with Sections 144 and 1448 of the lncome Tax Act, 1961 , bearing DlN. ITBA/AST/S/14712024-2511O73834530(1) for the assessment year 2020-21, pending disposal of the Writ Petition as otheruise ttle Petitioner will be put to severe loss and hardship. Counsel for the Petitioner: SRI S.VIJAY ADITHYA Counsel for the Respondents: Ms. J.SUNITHA, Sr. SC FOR lT The Court made the following: ORDER List on 27.08.2026 along with batch. Meanwhile, there shall be interim stay of the impugned order, in the light of the order granted by the Hon'ble Supreme Court vide its order in Diary No.2196 ol 2026 and batch decided on 10.04.2026. SD/. A.H.S.GOWRI SHANKAR AS NT REGISTRAR //TRUE COPY// TION OFFICER To, 1. The Assessment Unit, lncome Tax Department, lJa nal e-Assessment Center, Room No.401, 2nd Floor, E-Ramp, JawaharlaLl Nehru Stadium, New Delhi-1 10 003

2.

The lncome Tax Officer, Ward - '1 , Aayakar Bhavan, 6-2-15613, Subhash Nagar, Nizamabad 503002. 3. The Principal Chief Commissioner of lncome Tax, Andhra Pradesh and Telangana, Hyderabad, #10-2-3, Room No.922, 9th Floor, 'B' Block, lT Towers, AC Guards, Hyderabad-SOO 004 4. The Secretary, Ministry of Finance, Government of lndia, 3rd Floor, Jeevan Deep Building, Sansad Marg, New Delhi, Union of lndia-110 001. 5. The Section Officer, Writ DB Section, High Court for the State of Telangana at Hyderabad. 6. The Section Officer, Writ Posting Section, High Court for the State of Telangana at Hyderabad. 7. One CC to SRI S.VIJAY ADITHYA, Advocate [OPUC] 8. One CC to Ms. J SUNITHA, Sr. SC FOR lT [OPUC] 9. One CC to SRI N.BHUJANGA RAO, DEPUTY SOLICITOR GENERIAL OF lNDlA, High Court for the State of Telangana at Hyderabad [OPUC] 10. Two CD Copies BSR TKS a+

HIGH COURT DATED: 1710812026 2 DRAFTS LIST ON 27.08.2026 ALONG WITH BATCH. ir\\ STAr6 E, q v2o .b ORDER WP.No.9829 o12025 INTERIM STAY d tt .tP s * AJ'i' ,l ,l >e t oEs pA1

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