Anticipatory bail in income-tax default cases depends on facts, conduct, and judicial discretion, not automatic refusal.

Anticipatory bail in a prosecution for delayed filing of an income-tax return depends on a case-specific assessment, even where the alleged default is treated as an economic offence. The court noted that bail cannot be refused as a general rule in every such matter and that relevant considerations include payment of assessed tax and penalty, the amount involved, the likelihood of the accused appearing before the trial court, and proper judicial discretion under the bail provisions. Non-bailable warrants issued at the threshold were not treated as decisive. Anticipatory bail was granted, and the warrants were directed to stand cancelled on compliance with the stated conditions.

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Issues: Whether anticipatory bail should be granted in a prosecution for delayed filing of income-tax return, and whether the non-bailable warrants issued against the petitioners should be cancelled.

Analysis: The delayed filing of the return constituted an economic offence, but no general rule could be laid down that anticipatory bail must be refused in every such case. The controlling considerations were the facts and circumstances of the case, including payment of assessed tax and penalty, the amount involved, the likelihood of the accused appearing before the trial court, and the proper exercise of judicial discretion under the bail provisions. The issuance of warrants at the threshold was not treated as decisive, and the court held that process must be regulated according to the circumstances of the case and sound judicial principles.

Conclusion: Anticipatory bail was granted. The non-bailable warrants were directed to stand cancelled if the petitioners appeared before the trial court within the stipulated period, and they were to be released on bail on furnishing the required bonds and sureties and complying with the stated conditions.

Final Conclusion: Relief was granted to the petitioners by extending anticipatory bail and regulating their surrender and appearance before the trial court.

Ratio Decidendi: In prosecutions arising from economic offences, anticipatory bail is not to be refused as a rule; the grant of bail depends upon a case-specific assessment of relevant circumstances and the proper exercise of judicial discretion.

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