Criminal prosecution may continue despite pending tax appeals where the complaint is independent and shows a prima facie case.

Criminal proceedings for alleged offences under the Indian Penal Code and the Income-tax Act were treated as maintainable despite pending income-tax appeals, because the complaint was independent of the assessment order and disclosed a prima facie case. The court noted that assessment proceedings are civil in nature and that parallel civil and criminal proceedings can continue simultaneously. On that basis, the power to quash was not exercised and the criminal complaint was allowed to proceed.

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Issues: Whether the criminal proceedings alleging offences under the Indian Penal Code and the Income-tax Act could be quashed on the ground that they were based on an assessment order and that appellate proceedings in the tax matter were pending.

Analysis: The complaint was found to be independent of the assessment order, with the assessment proceedings treated as civil in nature. The existence of pending tax appeals did not bar criminal proceedings, as civil and criminal proceedings could proceed in parallel. The complaint disclosed a prima facie case, and the Court found no basis to exercise its power to quash the proceedings.

Conclusion: The request to quash the criminal complaint failed and the proceedings were allowed to continue.

Final Conclusion: Criminal prosecution was held to be maintainable notwithstanding the pendency of income-tax assessment proceedings, since the complaint was independent and disclosed a prima facie case.

Ratio Decidendi: Pending civil or assessment proceedings do not preclude criminal prosecution where the complaint is independent and discloses a prima facie case.

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