Self-assessment tax default can sustain prosecution where an appellate verification order does not erase the liability or quash the complaint.

Admitted non-payment of self-assessment tax after filing a revised return can support criminal prosecution under Section 140-A of the Income-tax Act, 1961, where the complaint discloses a prima facie case of wilful default. An appellate order directing verification of certain claims does not, by itself, erase the tax liability or grant blanket relief from prosecution. The principles for quashing under Section 482 CrPC apply only when the complaint fails to disclose an offence or continuation is an abuse of process. On the pleaded facts, the pendency of the tax appeal did not terminate the criminal proceedings, and the request to quash was rejected.

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Issues: Whether the order of the appellate authority directing verification of certain claims was sufficient to quash the criminal proceedings for alleged wilful failure to pay self-assessment tax under the Income-tax Act.

Analysis: The complaint was founded on the admitted failure to pay self-assessment tax despite filing a revised return, attracting the obligation under Section 140-A of the Income-tax Act, 1961. The earlier appellate order did not conclusively erase the tax liability or cancel the basis of prosecution; it only directed the Assessing Officer to verify some claims and allowed no blanket relief. The principles governing quashing under Section 482 of the Code of Criminal Procedure, 1973 apply only where the complaint does not disclose a prima facie offence or where continuation is an abuse of process. On the admitted facts and the material placed, the allegations disclosed a prima facie case of wilful default and the pendency of the tax appeal did not by itself wipe out the criminal proceedings.

Conclusion: The prayer to quash the proceedings was rejected; the criminal case was held to be maintainable and not liable to be terminated on the basis of the appellate order.

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