Largesized Cooperative Society Limited Vs Assessment Unit — Income Tax | Telangana HC (2026)

Largesized Cooperative Society Limited Vs Assessment Unit — Income Tax | Telangana HC (2026)

What the court decided

AI extract

Outcome

Writ petition dismissed as withdrawn with liberty to file a fresh writ petition; no order as to costs; miscellaneous applications, if any, closed.

Issue for consideration

Whether the assessment order dated 16.03.2024 (DIN ITBA/AST/S/147/2023-24/1062760777(1)) for AY 2018-19 passed by Respondent No. 1 under Section 147 r.w.s. 144 read with Section 144B of the Income-tax Act is arbitrary, illegal, void ab initio and violative of principles of natural justice, Articles 14, 19(1)(g) and 265 of the Constitution, Sections 148A, 149 and 151A of the Act and a CBDT circular, warranting quashing with consequential proceedings. (Raised in the prayer; not adjudicated, as the petition was withdrawn.)

Ratio / Principle

The writ petition is dismissed as withdrawn.

Key takeaways

Withdrawal was permitted with liberty to the petitioner to file a fresh writ petition.ratio¶55
There shall be no order as to costs.ratio¶57
Miscellaneous applications pending, if any, shall stand closed.ratio¶58

Detailed headnote1 paragraphs

Telangana High Court (Writ Petition No. 1025 of 2026, decided 03.02.2026; coram: Chief Justice Aparesh Kumar Singh and Justice G.M. Mohiuddin): Largesized Cooperative Society Limited, Karepally sought a mandamus to quash an assessment order dated 16.03.2024 (DIN ITBA/AST/S/147/2023-24/1062760777(1)) for AY 2018-19, passed by the Assessment Unit, National Faceless Assessment Centre under Section 147 r.w.s. 144 read with Section 144B of the Income-tax Act, alleging it to be arbitrary, illegal, void ab initio, violative of natural justice, Articles 14, 19(1)(g) and 265 of the Constitution, Sections 148A, 149 and 151A of the Act and contrary to a CBDT circular. Before adjudication, learned counsel for the petitioner sought permission to withdraw the petition with liberty to refile. The Court dismissed the writ petition as withdrawn with liberty to file a fresh writ petition, directed that there be no order as to costs, and closed miscellaneous applications, if any. No precedent was cited and no substantive tax issue was decided.

[³⁴⁸⁸ I

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD

(Special Original Jurisdiction)

TUESDAY, THE THIRD DAY OF FEBRUARY TWO THOUSAND AND TWENTY SIX

PRESENT

THE HONOURABLE THE .. CHIEF JUSTICE SRI APARESH KUMAR SINGH AND THE HONOURABLE SRI JUSTICE G.M. MOHIUDDIN

WRIT PETITION NO: 1025 OF 2026

Between:

-Iargesized^{CooperativeSociety Limited, Karepally Rep. by Secretary, B} Hanumantha Rao, S/o. NarayanaBollu, Aged about S4years, Occupation. Business, R/o. LscsKarepally 2-1, Karepally Nr Santha Road, Singareni, Khammam 507122, Telangana, lndia PAN.AAAALS498C, Assessment Year. 2018-19

...PETITIONER

AND

1 Assessment Unit, National Faceless Assessment Centre. lncome Tax Department, Ministry of Finance, Room No. 401, 2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, Delhi - 110 003.

The lncome Tax Officer, Ward-1, Kothagudem ln Come Tax ffice, 6-12-38, Ganesh Temple, Ganesh Temple Main Road, Kothagudem, Telangana507101

Union of lndia, Represent by its. Secretary Ministry of Finance, North Block, New Delhi-110 001

...RESPONDENTS

Petition under Article 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 an appropriate writ, order or direction more particutarty one in the nature of writ of mandamus holding that the order passed by 1st Respondent u/s. 147 r.w.s 144 read with section 144Bof the lncome-tax Act Date of 1610312024 with DIN No. ITBA/AST/S/1 4712023-2411062760777(1) for the Ay. 2O18-19, as arbitrary, illegal, bad in law, void ab initio, violation of^'principles of natural^justice .apart from violation of Articles 14, 19 (t Xg) and 265 of constitution of lndia apart

from being violative of^provisions of section 148A and section 149 of the Act and also contrary to the circular issued by CBDT and^provisions of section 151A of the Act, and consequently set aside the order^passed by 1st Respondent u/s 147 r.w.s 144 read with section 144Bof the lncome-tax Act Date of 1610312024 with DIN No. ITBA/AST/S/14712023-2411062760777(1) for the Ay. 2018-19 and all consequential proceedings^pursuant there to.

lA NO: 1 OF:2026

Petition under Section 151 CPC praying that in the circumstances stated in . the affidavit filed in support of the writ petition, the High Court may be pleased to stay all furtherr proceedings, including any recovery, pursuant to the order passed by the 1st Respondent uls 147 r.w.s 1 44 read with section 144Bof the lncome-tax Act Date of 16t03t2024 with DIN No. IT8A/A5T/5114712}23-2411062760777(1)for the Ay. 2018-19.

Counsel for the Petitioner: SRI B. MURALIDHAR REPRESENTING SRI THANNERU CHAITANYA KUMAR

Counsel for the Respondents No 3: SRI N. BHUJANGA RAO, Deputy Solicitor General of lndia

Gounsel for the Respondent No.1&2 : SRI K. SUDHA .KAR REDDY, Sr.SC FOR INCOME TAX DEPT

The Court made the following: ORDER

IN THE HIGH COURT FOR THE STATE OF TELANGAIYA

AT HYDERABAD

THE HON'BLE THE CHIEF JUSTICE SRI APARESH KUMAR SINGH

AND

THE HON'BLE SRI JUSTTCE G.M.MOHTUDDIN

WRIT PETITION No.l025 of 2026

Dated: 03.02.2026

Between:

Largesized Cooperative Society

Petitioner

and

Assessment Unit,

National Faceless Assessment Centre, lncome Tax Department, Ministry of Finance, Room No.40[,2nd Floor, E-Ramp.

Jawaharlal Nehru Stadium,

Delhi - 110 003,

and2 others.

Respondents

ORDER:

I

t

Learned gounsel B.Muralidhar, representing leqrq-,e4. cougqel

Sri T.Chaitarrya Kumar, appears for the petitioner.

q

Sri K.Sudhakar Reddy, learned Senior Standing Counsel for {

,

Income Tax Department, appears f,or respondents No.l and 2.

,

2

The writ petition is preferred seeking the following relief:

"For the reasons stated in the accompanying affidavit, the pe titioner herein prays that this Hon'ble Court may be pleased to issue an appropriate writ, order or direction more particularly one in the nature of writ of mandamus holding that the order^passed by l" Rr:spondent uls.l47 r.w.s 144 read with section 1448 of thc [ncome tax A,:t Date of 16.03.2024 with DIN No.ITBA/AST/51147120232t-11062760777(l) for the Ay. 2018-19 as arbitrary, illegal, bad in law, vc,id ab initio, violation of principles of natural^justice apart from violation of Articles la, l9(lXg) and265 of Constitution of lndia apart fnrm being violative of provisions of section l48A & section 149 of the A:t and also contrary to the circular issued by CBDT and^provisions of section 15lA ofthe Act and consequently set^asidethe order^{passed by} l'' Respondentu/s 147 r.w.s 144 read with section l44B of the lnconte Trrx Act Date of 16.03.2024 with DIN No.ITBA/AST/S/14112023241106276077'1(l) for the Ay.20l8-19 and all consequential proceedings pursuant there to, and pass such other order(s) as the Hon'ble Court deems fit and proper in the interest ofjustice."

3. Leamed counsel for the petitioner seeks^permissiotl to withdraw

the writ petition with liberty to the petitioner to file a fresh'uvrit^petition.

A.ccordingly, the writ petition is disrnissed as withdrar,vn rvith the

aforesairl liberty. However, there shall be no order as to costs.

N{iscellaneous applications pending, if any, shalI stand closed.

SD/.L.VIJAYA LAKSHMI ASSISTANT REGISTRAR6

//TRUE COPY//

SECTION OFFICER

I

,! To, l,l.t 1. One CC to SRI THANNERU CHAITANYA KUMAR, Advocate IOPUC] 2. One CC to SRI N. BHUJANGA RAO, Deputy Solicitor Generalof^lndia IoPUC)I

One CC to SRI K. SUDHARKAR REDDY, SC FOR INCOME TAX DEPT, IoPUCI

Two^()D Copies

DAN/BSK

b \r

HIGH GOURT

DATED i03l,0212026

ORDER

WP.No.1l025 of 2026

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DISMISSING THE WRIT PETITION

AS WITHDRAWN

WITHOLIT COSTS

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