Chandigarh High Court strikes down Section 147A of Income Tax Act in major tax ruling

The Chandigarh High Court has struck down Section 147A of the Income Tax Act, quashing tax notices issued to nearly 700 assessees across Punjab, Haryana and Chandigarh. The ruling emerged from a legal challenge filed by a Chandigarh lawyer against tax notices served under the disputed section.

This judgment represents one of the largest tax litigation clusters decided by the high court. The court's decision to invalidate Section 147A has implications for a substantial number of taxpayers across the three jurisdictions covered by the bench.