Regarding the inclusion of facts found in the AI based notice in the disposal of tax audit suits for the financial year 2017-18

Inclusion of AI-identified discrepancies requires issuing notices and hearing taxpayers before finalising tax-audit disposals.

Assessing officers must incorporate AI-based notice findings into disposal of tax-audit matters: if no prior notice exists, issue assessment notices including AI-identified objections; if notice issued but no order, notify taxpayers via the boweb portal and hear them on additional AI points before ordering; if order already passed, identify the tax periods to which AI-identified objections relate, issue separate notices for those periods, and pass orders after hearing. The same procedure applies to later years and strict compliance is required.