Allowing the appeal the Court held that the basis for initiating proceedings under the Income-tax laws by imposing penalty and on the criminal side by lodging a criminal complaint is the same. The levy of penalties and prosecution under S. 276C are simultaneous. Hence, once the penalties are cancelled on the ground that there is no concealment, the quashing of prosecution under S.276C is automatic.
Malti Mishra (Smt.) v. State Of Uttar Pradesh. (2018) 401 ITR 327 (All) (HC)
S. 276C : Offences and prosecutions – Wilful attempt to evade tax Order of penalty was set aside on ground there was no concealment of income — Prosecution was liable to be quashed. [ S. 271(1) (c ) ]