Settlement Commission relief can justify quashing criminal prosecution where identical facts were already covered by an earlier order.

Settlement Commission relief under the Income-tax Act, including acceptance of a settlement application and consideration of immunity from prosecution, was treated as a basis to challenge continuing criminal proceedings arising from the same facts. Where an earlier quashing order had already covered identical facts between the parties, continuation of the prosecution was regarded as unwarranted and an abuse of the process of court, leading to quashing of the criminal complaint and subsequent proceedings in favour of the taxpayers.

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Issues: Whether the criminal complaint and the subsequent proceedings could be quashed after the Settlement Commission allowed the application under the Income-tax Act and granted the requested relief.

Analysis: The petitioners had already moved the Settlement Commission under section 245C of the Income-tax Act, 1961, and had also sought immunity from prosecution under section 245H of that Act. The Settlement Commission accepted the application, and on the same factual foundation a previous single-judge decision between the parties had already quashed identical proceedings. In these circumstances, no reason existed to take a different view, and the continuance of the criminal trial was treated as unwarranted.

Conclusion: The criminal complaint and the subsequent proceedings were quashed in favour of the petitioners.

Ratio Decidendi: Once the Settlement Commission has allowed settlement proceedings on the same facts and the matter stands covered by an earlier quashing order on identical facts, continuation of the prosecution is an abuse of the process of court and the criminal proceedings are liable to be quashed.

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