Amnesty scheme protection survives prior notice under section 148, defeating prosecution for filing default.

An amnesty scheme remained available even after notice under section 148 of the Income-tax Act, 1961, because the governing instruction extended the scheme's benefit notwithstanding prior notices under section 139(2) or section 148. On that basis, the petitioners' filings were treated as covered by the scheme, and the alleged default could not support prosecution under section 276CC. The order framing charge was quashed, with the petitions allowed.

---

---

Issues: Whether the petitioners were entitled to the benefit of the amnesty scheme despite the issuance of notice under section 148 of the Income-tax Act, 1961, and whether prosecution under section 276CC of that Act could be sustained.

Analysis: The returns were filed under the amnesty scheme and the governing instruction extended the scheme's benefit even where notices under section 139(2) or section 148 had already been issued. On that basis, the existence of prior notice did not take the petitioners outside the scheme. Once the scheme benefit was held applicable, the foundation for prosecution was negatived.

Conclusion: The petitioners were entitled to the benefit of the amnesty scheme, and prosecution under section 276CC of the Income-tax Act, 1961, was not maintainable.

Final Conclusion: The order framing charge was quashed and the petitions were allowed.

Ratio Decidendi: Where an amnesty scheme or binding instruction extends its benefit notwithstanding prior notice under section 148 of the Income-tax Act, 1961, prosecution founded on non-compliance with filing obligations cannot be sustained.

---