Bombay High Court Criticizes Tax Department's AI-Generated Order Against Assessee

The Bombay High Court criticized the tax department for issuing an AI-generated order that declared a taxpayer's return invalid due to the absence of a tax audit report without, providing any explanation.

The court emphasized that principles of natural justice and fairness should not be compromised for the sake of AI and automation.

The court directed the petitioner to seek relief under Section 264 of the Income Tax Act and instructed the revisional authority to handle the case fairly, ensuring the petitioner is given an opportunity to be heard.