Statutory bar on probation under the Income-tax Act required reconsideration of the criminal appeal and fresh disposal.

The Supreme Court held that the High Court had dismissed the criminal appeal without considering the statutory bar in section 292A of the Income-tax Act against releasing offenders on probation. The respondents had been convicted under sections 276C and 277 and were released under the Probation of Offenders Act, but the appeal required examination of whether that relief was legally permissible in view of the express prohibition. The impugned order was set aside, and the criminal appeal was remitted to the High Court for fresh disposal in accordance with law.

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Issues: Whether the order of the High Court dismissing the criminal appeal without considering the statutory bar under section 292A of the Income-tax Act, 1961 against release of offenders on probation required interference and fresh disposal.

Analysis: The respondents had been convicted under sections 276C and 277 of the Income-tax Act, 1961 and were released under the Probation of Offenders Act. The challenge before the Court was that section 292A contained an express bar against applying the Probation of Offenders Act to offences under the Income-tax Act. The respondents were allowed to contend that they were not liable to conviction on the merits in the appeal pending before the High Court.

Outcome: The impugned order was set aside and the criminal appeal was remitted to the High Court for fresh disposal in accordance with law.

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