Delhi HC warns department on use of Income Tax search material & AI-generated judgments in GST proceedings

Last updated: 25 December 2025

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The Delhi High Court has clarified that while the GST department can examine material seized by the Income Tax department during searches, they cannot automatically apply the presumptions from the Income Tax Act in GST proceedings. The court also issued a stern warning to government departments against using AI-generated or fake judgments in official notices, stressing the importance of verifying all cited precedents.

Court :
Delhi High Court

Brief :
The Hon'ble Delhi High Court in the case of J M Jain Prop. Sh Jeetmal Choraria v. Union of India [W.P.(C) 16754/2025 & CM APPL. 68768/2025, order dated November 27, 2025] held that the GST department may independently scrutinize material seized by the Income Tax Department during IT searches but presumptions from sections 132(4A) and 292C of the Income Tax Act cannot be applied directly in GST proceedings. The Court also warned Government departments against relying on Artificial Intelligence generated or fake judgments in notices and emphasized the need for proper verification.

Citation :
W.P.(C) 16754/2025 & CM APPL. 68768/2025, order dated November 27, 2025

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Bimal Jain

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FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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