Discharge in tax prosecution refused where tribunal order did not erase allegations of false return and concealed income.

An accused seeking discharge under section 245(1) CrPC could not rely on an Appellate Tribunal order where the complaint alleged filing of a false return, suppression of turnover and income, and wilful attempt to evade tax under sections 276C(1) and 277 of the Income-tax Act. The Tribunal merely recharacterised the concealed income as income from other sources and did not negate the alleged concealment or falsity in the return. Because the complaint's foundation remained intact, the prosecution survived and no ground for discharge was made out.

---

---

Issues: Whether the accused was entitled to discharge under section 245(1) of the Code of Criminal Procedure, 1973, on the basis of the Appellate Tribunal's order.

Analysis: The complaint alleged that the assessee filed a false return under section 139 of the Income-tax Act, 1961, suppressed turnover and income, and wilfully attempted to evade tax, constituting offences under sections 276C(1) and 277 of the Income-tax Act, 1961. The Appellate Tribunal's finding only recharacterised the concealed income as income from other sources and did not absolve the assessee of the alleged concealment or falsity in the return. The allegations in the complaint therefore continued to survive and the tribunal order did not destroy the foundation of the prosecution. In such circumstances, no ground was made out for discharge.

Conclusion: The accused was not entitled to be discharged under section 245(1) of the Code of Criminal Procedure, 1973.

---