Bombay HC quashes I-T assessment order, flags non-existent AI-generated case laws

The Bombay High Court has quashed an income tax assessment while flagging the use of artificial intelligence in the order and noting that the assessing officer relied on non-existent AI-generated case laws to justify additions to a company’s declared income.

A bench of Justices BP Colabawalla and Amit Jamsandekar stated that in the era of artificial intelligence, quasi-judicial authorities, especially, should not blindly rely on AI-generated information and must cross-verify the same.