Income-tax prosecution quashing plea left open after penalty orders were set aside in appeal

Criminal complaints for alleged offences under the Income-tax Act were sought to be quashed on the ground that the related penalty orders had been set aside in appeal. The Kerala High Court declined to examine the merits of the quashing plea at that stage and left the petitioner free to raise all contentions before the trial court. The criminal miscellaneous cases were disposed of accordingly.

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Issues: Whether the criminal complaints alleging offences under the Income-tax Act could be quashed at the threshold on the ground that the penalty orders had been set aside in appeal; and whether such contentions should be decided in the quashing proceedings or left to be urged before the trial court.

Outcome: The Court declined to adjudicate on the merits of the quashing plea at that stage, left the petitioner free to raise all contentions before the trial court, and disposed of the criminal miscellaneous cases.

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