Quashing of Prosecution under Section 276C of Income-tax Act due to Penalty Cancellation

The High Court of Patna quashed the prosecution of the petitioners under section 276C of the Income-tax Act, 1961, due to the cancellation of the penalty imposed on the same matter on appeal.

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The High Court of Patna quashed the prosecution of the petitioners under section 276C of the Income-tax Act, 1961. The court considered that since the penalty imposed on the same matter was canceled on appeal due to lighter standard of proof in penalty proceedings, the prosecution should be quashed. The application was allowed, and the prosecution was quashed.

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