Judicial Recall and Tax Implications in Trust Settlements: Using AI-generated citations without proper verification

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..... ence involving two interconnected orders from ITAT Bangalore - one dated 30.12.2024 and its subsequent recall on 07.01.2025. The case primarily deals with the taxability of investments in a trust u/s 56(2)(x) of the Income Tax Act and highlights the importance of judicial diligence in relying on precedents. Background Context The case involves Buckeye Trust, which received investments worth Rs. .....

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..... a v. S. Narasimhulu - Sudhir Gopi v. Usha Gopi This recall highlights the critical importance of verifying precedents and the dangers of potentially using AI-generated citations without proper verification. Original Order's Key Holdings (30.12.2024) 1. Trust Benefits Not Limited to Relatives The ITAT found that the trust deed allowed benefits to extend beyond relatives, making it ineligible .....

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..... ral Safeguards The recall order emphasizes the need for enhanced due diligence in legal research and citation verification. Conclusion This case represents a significant development in trust taxation and judicial procedure. The recall order serves as a cautionary tale about the importance of proper legal research and citation verification.     Full Text: 2025 (2) TMI 1102 - ITAT BA .....

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