Independent criminal complaint under the Income-tax Act survives assessment remand; quashing is not automatic.

A criminal complaint under the Income-tax Act and IPC is not automatically liable to quashing because an assessment order has been set aside or the assessment is remanded. The criminal court must assess the complaint independently on the evidence and materials before it, and an Income-tax Act order may be relevant but does not bind that court. Where the appellate tribunal has not finally negatived the allegations, the prosecution cannot be treated as unsustainable at that stage. On the stated facts, it was too early to conclude that the charge was groundless or that the proceedings were an abuse of process, so interference under section 482 CrPC was declined.

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Issues: Whether the criminal complaint for offences under the Income-tax Act and the Indian Penal Code was liable to be quashed on the ground that the assessment order had been set aside and the underlying foundation of the prosecution had ceased to exist.

Analysis: The complaint was held to have an independent existence and had to be examined on the evidence and materials placed before the criminal court. The setting aside of the assessment by the appellate tribunal did not automatically render the prosecution unsustainable, particularly where the tribunal had not finally negated the allegations and had remanded the matter for fresh assessment. An order under the Income-tax Act may have relevance, but it does not bind the criminal court or prevent it from independently determining whether the ingredients of the alleged offences are made out. On the facts, it was too early to conclude that the charge was groundless or that the proceedings amounted to an abuse of process.

Conclusion: The request to quash the criminal proceedings was rejected and the court declined to interfere under section 482 of the Code of Criminal Procedure, 1973.

Ratio Decidendi: A criminal complaint under the Income-tax Act is not rendered liable to quashing merely because assessment proceedings or related appellate orders are pending or have resulted in remand; the criminal court must independently determine the offence on the materials before it.

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