Valid sanction requirement defeated prosecution where a show-cause notice was not an order granting prosecution approval.

Prosecution for offences under sections 276C and 277 of the Income-tax Act could not be sustained because valid sanction under section 279 was absent. A show-cause notice issued by the Commissioner, asking the assessee to explain why prosecution should not be launched, was not an order granting sanction. The record also did not show that any valid sanction had been obtained and withheld from the complaint. The sanction requirement therefore remained unsatisfied, and the prosecution was liable to fail.

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Issues: Whether the prosecution for offences under sections 276C and 277 of the Income-tax Act, 1961 was liable to be quashed for want of valid sanction under section 279 of the Act.

Analysis: The complaint stated that sanction had been accorded by the Commissioner of Income-tax, but the document produced was only a show-cause notice calling upon the assessee to explain why prosecution should not be launched. Such a notice could not amount to an order granting sanction. The record also did not show that any valid sanction had in fact been obtained and withheld from the complaint.

Conclusion: The requirement of sanction under section 279 was not satisfied, and the prosecution could not be sustained.

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