Archive · 27 Oct 2025
Bombay HC Quashes I-T Order Citing AI-Generated Case Laws
The Bombay High Court overturned an income tax assessment because the tax officer used fake case laws created by Artificial Intelligence.
KMG Wires Pvt Ltd.
was initially assessed to have an income of Rs 3.09 crore, but was later assessed with Rs 27.91 crore by the National Faceless Assessment Centre.
The court pointed out that relying solely on AI without verification is a mistake, especially in legal decisions.
The court determined that the assessment process was unfair because it didn't consider the company's response.
The court sent the issue back to the assessing officer for reconsideration, after they remove the non-existent AI-generated case laws.
Bombay High Court quashed an income tax assessment order against KMG Wires Pvt Ltd.
The court found the assessing officer relied on non-existent AI-generated case laws.
The assessment order was deemed to have breached the principles of natural justice.
The court noted the assessing officer failed to consider the company's reply.
The issue was remanded to the assessing officer for a fresh hearing.
- Who
- Bombay High Court
- What
- Quashed an income tax assessment and flagged the use of AI-generated case laws.
- When
- Earlier this month; order passed in March
- Where
- Mumbai
- Why
- The court found the assessment relied on non-existent AI-generated case laws and breached principles of natural justice.
- Court
- Bombay High Court
- Company
- KMG Wires Pvt Ltd
- Original Income
- Rs 3.09 crore
- Assessed Income
- Rs 27.91 crore
- Ruling
- Assessment order quashed