Tax prosecution for concealment is not barred by revised returns or penalty relief if the complaint discloses a prima facie offence.

Finality of revised return or penalty proceedings does not by itself prevent prosecution for concealment or false verification under the Income-tax Act and IPC. The court held that section 279 limits prosecution only in the manner provided by statute, and findings in income-tax or penalty proceedings do not bind the criminal court. A criminal prosecution may be quashed only if the complaint, taken at face value, discloses no offence. On the facts, the complaint showed a prima facie case, so the later acceptance of revised returns and the assessee's success in penalty proceedings did not bar continuation of the prosecution.

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Issues: Whether prosecution for offences under sections 276C and 277 of the Income-tax Act and sections 193 and 196 of the Indian Penal Code could be quashed because the assessee had filed revised returns and succeeded in penalty proceedings before the Income-tax Appellate Tribunal.

Analysis: There is no rule that criminal prosecution for concealment of income or false verification cannot be launched or continued merely because revised returns were filed within time or because penalty proceedings ended in favour of the assessee. Section 279 of the Income-tax Act restricts prosecution only in the manner stated by the statute, and the result of proceedings before the income-tax authorities does not bind the criminal court. The criminal court must independently determine whether the ingredients of the offences are made out on the basis of the complaint and evidence. Quashing is justified only where the complaint, taken at face value, discloses no offence. On the facts stated, the complaint disclosed a prima facie case, and the later acceptance of revised returns or dropping of penalty did not bar the prosecution.

Conclusion: The prosecution was not liable to be quashed on the ground of finality of the penalty proceedings or the filing of revised returns; the refusal to quash was correct.

Ratio Decidendi: Finality of tax penalty or assessment proceedings does not bar prosecution for concealment or false verification, and a criminal court may quash such proceedings only when the complaint itself discloses no offence.

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