Assessment Based on Nonexistent Case Law Quashed: Bombay HC Warns Against Blind AI Reliance

KMG Wires Private Limited Vs National Faceless Assessment Centre (Bombay High Court) KMG Wires Private Limited vs NFAC (Bombay High Court): Assessment Order Quashed for Violation of Natural Justice The Bombay High Court, in KMG Wires Private Limited vs National Faceless Assessment Centre (Writ Petition, decided on 27 March 2025), quashed an assessment order under Section 143(3) read with Section 144B of the Income Tax Act, 1961 for the Assessment Year 2023–24. The order had increased the petitioner’s assessed income from ₹3.09 crore to ₹27.91 crore. The Court found that the assessment ...