The petitioner sought quashing of the prosecution under section 276CC for failure to file the return of income for A.Y. 2014-15 within the prescribed time. Though the return was filed only after the issuance of notice under section 148 and institution of criminal proceedings, it disclosed that tax had already been deducted at source and the assessee was entitled to a refund of ₹1,64,340, which position was accepted in the assessment order. The Bombay High Court held that the case was squarely covered by the proviso to section 276CC and the decision of the Supreme Court in Guru Nanak Enterprises v. ITO (2005) 10 SCC 451. It observed that where, after giving credit for TDS and advance tax, the tax payable does not exceed the prescribed statutory limit, prosecution under section 276CC cannot be continued. The Court also noted that the sanctioning authority had failed to consider the TDS already deducted and that there was no loss of revenue. Accordingly, the criminal prosecution was held to be wholly unwarranted, quashed as an abuse of the process of law, and the writ petition was allowed. (WP. No. 5692 of 2025, dt. 22-07-2026.)