Where the Assessing Officer disallowed purchases on the ground that the supplier had not responded to the notice u\/s 133(6), though the supplier had in fact filed a detailed reply confirming the transaction with supporting documents, and further made an addition of unsecured loans by relying on non-existent judicial decisions and without showing any working or issuing a show-cause notice, it was held that the assessment was passed in gross violation of the principles of natural justice. The Department fairly admitted that the supplier\u2019s response was not considered and that certain cited judgments were non-existent. The Court observed that quasi-judicial authorities cannot rely blindly on results generated by AI tools without independent verification. Accordingly, the Assessment Order u\/s 143(3) r.w.s. 144B, the consequential demand u\/s 156, and penalty notice u\/s 274 r.w.s. 271AAC were quashed and set aside, and the matter remanded to the Assessing Officer to issue a fresh show-cause notice, grant opportunity of hearing, and pass a speaking order. (A.Y. 2023-24) (W.P. (L) No. 24366 of 2025; dt. 6-10-2025) \u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 143(3) : Assessment \u2013 Principles of natural justice \u2013 Assessment order passed without considering reply to notice u\/s 133(6) and by relying on non-existent case law \u2013 Artificial Intelligence (AI )- Quasi-judicial authorities cannot rely blindly on results generated by AI tools without independent verification- Breach of natural justice \u2013 Alternative remedy \u2013 Appeal was filed to avoid limitation- -Assessment quashed and matter remanded [S. 68, 133(6), 144B , 156, 271AAC, 274, Art. 226]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-57286","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-eTY","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/57286","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=57286"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/57286\/revisions"}],"predecessor-version":[{"id":57287,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/57286\/revisions\/57287"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=57286"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=57286"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=57286"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}