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1. Application under section 482 of the Code of Criminal Procedure for quashing the order of cognizance and the prosecution. 2. Allegation of concealment of income under the Income-tax Act. 3. Appeal allowed by the Commissioner of Income-tax leading to setting aside of penalty. 4. Contention of misuse of court process due to subsequent developments. 5. Disagreement on quashing the criminal prosecution based on the appeal decision. 6. Interpretation of relevant case laws from High Courts and Supreme Court. Analysis: The judgment pertains to an application under section 482 of the Code of Criminal Procedure seeking the quashing of the order of cognizance and the entire prosecution related to a complaint case. The petitioners, partners of a firm, were accused of concealing income under the Income-tax Act for the assessment year 1990-91. The assessing authority found a discrepancy in the income reported and imposed a penalty based on the alleged concealment. However, the petitioners appealed the decision, and the Commissioner of Income-tax allowed the appeal, setting aside the penalty and assessment. The petitioners contended that since the appellate authority had set aside the penalty and assessment, the basis of the prosecution no longer existed. They argued that continuing the prosecution would amount to a misuse of the court process. Citing relevant case laws, they emphasized that when the appellate authority accepts the explanation of the assessee and deletes the penalty, the prosecution should be discontinued. On the other hand, the opposing party argued that the appeal decision should not be a ground for quashing the criminal prosecution and could be raised before the trial court for consideration. The court, after considering the facts and arguments presented, observed that the entire allegation of concealment of income and imposition of penalty was no longer valid in light of the decision of the appellate authority. Relying on precedents, including a case from the High Court and a judgment from the Kerala High Court, the court concluded that the prosecution was liable to be quashed. It noted that the Kerala High Court's decision suggested raising the issue in the trial court, but in this case, given the circumstances and legal precedents, remitting the case back to the trial court would serve no useful purpose. In the final decision, the court allowed the application and quashed the order of cognizance dated January 4, 1993, along with the entire prosecution against the petitioners in Complaint Case No. 3 of 1993 pending in the Special Court for Economic Offences, Dhanbad.
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