Archive · 29 Nov 2025
Delhi HC Warns Tax Departments on AI-Generated Fake Judgments
The Delhi High Court has warned the GST and IT Departments to be very careful when using Artificial Intelligence (AI) in their official notices.
The court said that AI can sometimes make up fake judgments, which can cause problems.
They mentioned a case where AI gave incorrect information and said that AI should only be used for basic research, not for making important decisions.
The court also told the departments to check all AI-generated content before using it in official documents.
An expert from Deloitte agreed, saying that AI can help with research but must be verified to avoid mistakes.
Delhi High Court cautioned GST and IT Departments about using AI in show cause notices.
The court found discrepancies in judgments cited by the GST Department, highlighting AI's tendency to generate fake judgments.
AI was described as unreliable for adjudicating legal issues, suitable only for preliminary research.
The court emphasized the need to verify all AI-generated content before citing it in official documents.
An expert from Deloitte supported the ruling, noting the risk of 'AI hallucinations' and the importance of verification.
- Who
- Delhi High Court, GST and IT Departments
- What
- Warning about using AI-generated fake judgments in notices
- When
- November 29, 2025
- Where
- Delhi High Court
- Why
- To ensure accuracy and reliability in legal proceedings
- Court
- Delhi High Court
- Departments Warned
- GST and IT Departments
- Key Judges
- Justices Prathibha M Singh and Shail Singh
- AI Risk Highlighted
- AI hallucinations and fake judgments
- AI Use Caution
- Verify all AI-generated content before citing
- Case Reference
- Christian Louboutin SAS vs M/S Shoe Boutique
- Expert Comment
- Harpreet Singh, Partner, Indirect Tax, Deloitte
- Publication Date
- November 29, 2025