Independent assessment in tax-offence prosecutions prevails; later income-tax relief does not automatically quash criminal proceedings.

Subsequent appellate relief or settlement findings in income-tax proceedings do not by themselves bar criminal prosecution for alleged tax evasion and false verification. The criminal court must assess independently, on the evidence before it, whether the ingredients of the offences are made out, and later orders on tax liability may be considered only as relevant material. The pendency of prosecution is not rendered an abuse of process merely because tax authorities later grant relief or record different findings. On that basis, the quashing petition was rejected and the criminal complaint was permitted to proceed.

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Issues: Whether criminal proceedings for alleged tax evasion and false verification could be quashed on the basis of subsequent appellate and settlement orders in income-tax proceedings.

Analysis: The complaint alleged wilful attempt to evade tax and false verification in the return. Subsequent orders under the income-tax proceedings, including appellate relief and observations of the Settlement Commission, were relevant material but did not bind the criminal court. The criminal court was required to determine independently whether the ingredients of the offences were made out on the evidence before it. The pendency of prosecution was not rendered an abuse of process merely because the tax authorities later granted relief or recorded findings on tax liability.

Conclusion: The petition for quashing was not sustainable and the criminal complaint was allowed to proceed.

Final Conclusion: Findings in income-tax proceedings may be considered by the criminal court, but they do not extinguish prosecution for alleged offences under the tax law and the penal law.

Ratio Decidendi: Criminal prosecution for tax offences must be judged independently on the evidence before the criminal court, and subsequent orders in assessment, appeal, or settlement proceedings do not by themselves bar or nullify such prosecution.

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