Nowadays we are using a lot of chat GPT and other such Artificial Intelligence (AI) tools in our daily functioning. However, AI sometimes offers wrong results. Recently one such case has come in Madia. In this, the Income Tax Appellate Tribunal used Artificial Intelligence to draft an order. He later had to withdraw his order. Let us know in detail about this matter.
This case Buckeye Trust Vs. Pcit Is associated with Honorable ITAT Bengaluru gave the verdict in favor of the tax department on the basis of the Supreme Court and Madras High Court in case of a tax dispute of Rs 669 crore. Later it was discovered that these decisions were either not real or they were made artificial. It may also be that Artificial Intelligence presented the result of such decisions in this case which were not related to the case.
The order the AI presented included false decisions. It incorrectly introduced a real decision, which was not related to the case. When the Honorable Tribunal came to know about this mistake, he immediately withdrew the order. An important thing has come to light from this incident. That is that Artificial Intelligence can make our daily life easier, but we cannot trust it by closing it. Especially in cases where facts are necessary.
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Nowadays many people are using artificial intelligence in tax planning or legal matters. They are doing so without consulting their chartered accountant or advocate. Chartered Accountants and Advocates are aware of the law and its procedure. The recent incident is a big lesson for those people, using artificial intelligence very much. Using the AI results without investigating can lead to wrong results.
(The author is a chartered accountant. He is an expert on personal finance, especially income tax.)