Important Notice
Please read this Risk Disclosure document carefully before using TaxNoticeAI. This document informs you of the risks and limitations associated with using AI-generated content for tax notice responses. By using TaxNoticeAI, you acknowledge that you have read, understood, and accepted the risks described herein.
1. General Risk Statement
Using AI-generated draft replies for income tax proceedings involves inherent risks. Tax law is complex, fact-specific, and subject to frequent changes through amendments, circulars, and judicial pronouncements. AI models, while powerful, have limitations in understanding nuanced legal contexts. You should not rely solely on AI-generated content for responding to tax notices without professional review.
2. AI Model Limitations
TaxNoticeAI uses large language models and retrieval-augmented generation (RAG) to analyze notices and generate replies. These systems have specific limitations:
- Hallucination risk: AI models may generate plausible-sounding but incorrect legal citations, section numbers, or case law references. While we verify citations against our database, some errors may slip through.
- Knowledge cutoff: AI models are trained on data up to a certain date. Recent amendments, circulars, or court decisions may not be reflected in generated content.
- Context limitations: AI may not fully understand the specific facts and circumstances of your case, leading to generic or inappropriate arguments.
- OCR errors: Text extraction from scanned documents may contain errors, leading to incorrect analysis of the notice content.
- Jurisdictional nuances: Tax law interpretation varies by jurisdiction, bench, and tribunal. AI may not capture local precedent preferences.
- IT Act 2025 transition: Section mapping between the IT Act 1961 and IT Act 2025 involves interpretive judgment. Our mappings may not align with eventual official notifications.
3. Professional Review Required
All AI-generated draft replies must be reviewed, verified, and approved by a qualified Chartered Accountant or tax professional before submission to any income tax authority. TaxNoticeAI is a professional productivity tool, not a substitute for professional judgment.
Submitting an AI-generated draft without professional review may result in incorrect arguments, missed deadlines, adverse orders, penalties, or other consequences. You bear full responsibility for any document you submit to tax authorities.
4. Not Legal or Tax Advice
TaxNoticeAI and Aanya Technologies do not provide legal advice, tax advice, or professional consulting services. The Platform is not a law firm, CA firm, or registered tax practitioner. Nothing on the Platform should be construed as professional advice or a recommendation for any specific course of action.
AI-generated content, including legal analyses, draft replies, citations, and strategy suggestions, are provided strictly as starting points for professional review. You should always consult with a qualified professional for specific legal or tax matters.
5. Legal Database Limitations
Our legal database includes ITAT orders, High Court rulings, Supreme Court decisions, and CBDT circulars sourced from public databases. However:
- The database may not include all relevant case law or the most recent decisions
- Case summaries may not capture all relevant nuances or distinguishing facts
- Case law applicability depends on specific facts — similar citations may not apply to your case
- Some decisions may have been overruled, distinguished, or superseded without our knowledge
6. Your Responsibility
As a tax professional using TaxNoticeAI, you are solely responsible for:
- Verifying all legal citations and case law references independently
- Ensuring the AI-generated draft is appropriate for the specific facts of your case
- Reviewing and editing the draft before submission to any authority
- Meeting all filing deadlines (TaxNoticeAI's deadline tracking is advisory only)
- Maintaining client confidentiality and obtaining necessary consents for uploading documents
- Complying with your professional code of conduct and ethical obligations
7. Financial and Legal Consequences
Incorrect or inadequate responses to tax notices can result in:
- Adverse assessment orders and increased tax demands
- Penalties under various sections of the Income Tax Act
- Interest charges on outstanding demands
- Prosecution proceedings in serious cases
- Professional liability for the CA or tax practitioner
TaxNoticeAI and Aanya Technologies bear no responsibility for any financial losses, penalties, adverse orders, or other consequences arising from the use of AI-generated content.
8. Technology and Platform Risk
The Platform depends on technology infrastructure, including servers, AI services, and third-party APIs. We do not guarantee uninterrupted or error-free access. Technical failures, system outages, or AI service disruptions may occur. You should not rely on the Platform as your sole tool for meeting time-sensitive filing deadlines.
9. Acknowledgement
By using TaxNoticeAI, you acknowledge and confirm that:
- You have read and understood this Risk Disclosure document in its entirety
- You understand that AI-generated content may contain errors and must be professionally reviewed
- You understand that TaxNoticeAI does not provide legal or tax advice
- You are solely responsible for verifying all citations and reviewing all drafts before submission
- You will not hold TaxNoticeAI or Aanya Technologies liable for any consequences arising from use of the Platform
10. Contact
If you have any questions about this Risk Disclosure, please contact us at support@niftydesk.app.