Assessing Officer initiated prosecution against assessee for offence under section 277.  Assessee filed an application before Settlement Commission under section 245C and disclosed additional income and paid tax. Settlement Commission granted immunity from prosecution. However, assessee filed petition to quash proceedings initiated against it under section 277. Dismissing the petition the Court held that   prosecution proceedings under Income-tax Act were launched two years back and factum of pending prosecution was not brought to notice of Settlement Commission. Assessee concealed fact of such pending prosecution for offence under section 277 and obtained immunity in respect of prosecution and same was not brought to knowledge of Settlement Commission. High Court also held that  since prosecution was initiated two years before date of filing settlement application, provisions under section 245-I was not applicable and, thus, prosecution proceedings against assessee could not be quashed.  SLP filed by assessee against said  order is   dismissed.