Tax dept used AI to issue income tax notice; Bombay High Court quashes notice, calls process unfair to taxpayer

The Bombay High Court has cancelled a tax notice because the Income Tax Department used Artificial Intelligence to draft the notice citing three non-existing judgements. The court found the department relied on non-existent judicial rulings. This process was deemed unfair to the taxpayer. The court ordered a fresh notice and a chance for the taxpayer to be heard.