https://www.taxtmi.com/caselaws?id=24131 Where the competent income-tax authority, acting on merits, accepts the assessee's explanation and deletes penalty for the same tax-deduction default, prosecution under section 276B cannot validly continue for that default. The decision treats the departmental finding as removing the basis for criminal liability, consistent with the principle applied in Uttam Chand. The 1986 amendment to section 276B and the insertion of section 278AA did not alter that position, because section 278AA preserves the defence of reasonable cause and the amended scheme remains consistent with quashing prosecution where the statutory authority has finally accepted the explanation on merits. en-us Mon, 24 Apr 1989 00:00:00 +0530 Sat, 16 Jan 2010 18:04:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=24131 Where the competent income-tax authority, acting on merits, accepts the assessee's explanation and deletes penalty for the same tax-deduction default, prosecution under section 276B cannot validly continue for that default. The decision treats the departmental finding as removing the basis for criminal liability, consistent with the principle applied in Uttam Chand. The 1986 amendment to section 276B and the insertion of section 278AA did not alter that position, because section 278AA preserves the defence of reasonable cause and the amended scheme remains consistent with quashing prosecution where the statutory authority has finally accepted the explanation on merits. Case-Laws Income Tax Mon, 24 Apr 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=24131