https://www.taxtmi.com/caselaws?id=784615 Criminal prosecution under ss. 276C(1) and 277 of the Income-tax Act, premised on alleged concealment and levy of penalty, was challenged on the ground that the penalty forming the substratum of the complaint had been set aside. Applying SC rulings that where appellate findings erase the concealment/penalty, the foundation of prosecution is destroyed and continuation of trial is an "idle formality," the HC held that, since the penalty order on the same subject-matter no longer existed and the department failed to sustain it in appeal, the criminal proceedings could not survive. The complaint case and all consequential proceedings were quashed. en-us Mon, 05 Jan 2026 00:00:00 +0530 Thu, 08 Jan 2026 08:45:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=784615 Criminal prosecution under ss. 276C(1) and 277 of the Income-tax Act, premised on alleged concealment and levy of penalty, was challenged on the ground that the penalty forming the substratum of the complaint had been set aside. Applying SC rulings that where appellate findings erase the concealment/penalty, the foundation of prosecution is destroyed and continuation of trial is an "idle formality," the HC held that, since the penalty order on the same subject-matter no longer existed and the department failed to sustain it in appeal, the criminal proceedings could not survive. The complaint case and all consequential proceedings were quashed. Case-Laws Income Tax Mon, 05 Jan 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=784615