https://www.taxtmi.com/caselaws?id=441010 Criminal prosecution under the Income-tax Act cannot be sustained where the assessee has been exonerated on merits in connected penalty proceedings and the underlying allegation is found unsupported by material evidence. The Tribunal recorded that no authentic material established the alleged cash expenditure and that the addition rested on presumptions and assumptions; those factual findings removed the foundation for the complaint. Although adjudication proceedings and criminal prosecution are independent in principle, prosecution based on the same facts cannot continue once the competent appellate authority has found the contravention unsustainable. The criminal complaint was therefore liable to be quashed. en-us Thu, 13 Jul 2023 00:00:00 +0530 Mon, 05 Feb 2024 10:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=441010 Criminal prosecution under the Income-tax Act cannot be sustained where the assessee has been exonerated on merits in connected penalty proceedings and the underlying allegation is found unsupported by material evidence. The Tribunal recorded that no authentic material established the alleged cash expenditure and that the addition rested on presumptions and assumptions; those factual findings removed the foundation for the complaint. Although adjudication proceedings and criminal prosecution are independent in principle, prosecution based on the same facts cannot continue once the competent appellate authority has found the contravention unsustainable. The criminal complaint was therefore liable to be quashed. Case-Laws Income Tax Thu, 13 Jul 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=441010