Introduction: The Paradox of Simultaneous But Interconnected Proceedings

Income tax law presents a seemingly contradictory framework: criminal prosecution and penalty proceedings are simultaneously independent, yet hierarchically intertwined. An assessee can face both penalty under Section 271(1)(c) and criminal prosecution under Section 276C for the same conduct—concealment of income. Yet this independence comes with a critical caveat: when penalties are cancelled, criminal prosecution stands automatically quashed.

This article explores the intricate relationship between penalty and criminal prosecution under Income Tax Act, examining the Supreme Court’s doctrine of simultaneity established in K.C. Builders, the principle that appellate tribunal findings are binding on criminal courts, and the practical implications for tax practitioners and assessees. The relationship between these criminal prosecution and penalty proceedings is perhaps the most misunderstood aspect of income tax law, often leading to costly litigation over issues that were already resolved.

Part I: The Statutory Framework

Section 271(1)(c): Civil Penalty for Concealment

Section 271(1)(c) of the Income Tax Act, 1961, provides for civil penalties:

“271. Failure to furnish returns, comply with notices, concealment of income, etc.—(1) If the assessing officer or the Commissioner (Appeals) or the Commissioner in the course of any proceedings under this Act, is satisfied that any person… (c) has concealed the particulars of his income or furnished inaccurate particulars of such income, he may direct that such person shall pay by way of penalty…” [1]

This is a civil remedy—a monetary penalty imposed by administrative authority. The standard of proof is on the balance of probabilities (preponderance of probabilities). The assessee’s right to a hearing, appeal before CIT(A), and further appeal to ITAT are guaranteed.

Section 276C: Criminal Prosecution for Willful Tax Evasion

Section 276C(1) provides for criminal prosecution:

“276C. Punishment for willfully attempting to evade tax.—(1) If a person wilfully attempts in any manner whatsoever to evade any tax, penalty or interest chargeable or imposable, or under reports his income under this Act, he shall, without prejudice to any penalty that may be imposable on him under any other provision of this Act, be punishable with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine where the amount of tax sought to be evaded exceeds Rs. 25 lakhs…”​ [2]

This is a criminal offense. The standard of proof is beyond reasonable doubt—the most stringent standard in law. Prosecution requires sanction from the Principal Commissioner or Commissioner under Section 276C(2).​

Key distinction: Section 276C requires wilful attempt to evade tax—a positive act demonstrating conscious and intentional effort. Mere technical non-compliance or bona fide errors do not attract criminal prosecution.​

Section 277: Criminal Prosecution for False Verification

Section 277 deals with false statements in verification:

“277. Punishment for falsification of books of account, etc.—If a person, in any verification under the Act or under any rule made thereunder, or in any document required to be submitted to the tax authorities, makes a statement which is false and which he either knows to be false or does not believe to be true, he shall be punishable with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine where the amount of tax involved exceeds Rs. 25 lakhs…”​ [3]

Section 278B: Vicarious Liability for Corporate Entities

Section 278B extends criminal liability:

“278B(1) Where an offence under the Income Tax Act has been committed by a company, every person in charge of and responsible for the conduct of its business as well as the company itself shall be deemed guilty of the offence and shall be liable to be proceeded against and punished accordingly.”​ [4]

However, the section provides a defense: individuals shall not be liable if they prove that the offense was committed without their knowledge or that they exercised all due diligence.

Section 120B IPC: Conspiracy and Abetment

Criminal investigations often implicate Section 120B of the Indian Penal Code (criminal conspiracy) and Section 278 of the Income Tax Act (abetment of false returns). K.C. Builders involved charges under both the Income Tax Act and the IPC.​[5]

Section 120B IPC defines criminal conspiracy as an agreement between two or more persons to commit an unlawful act or a legal act in an unlawful manner.

Part II: The Supreme Court’s Landmark K.C. Builders Judgment

Case Facts and Procedural History

The K.C. Builders case, decided by the Supreme Court in 2004 and reported as (2004) 265 ITR 562 (SC), involved a partnership firm engaged in construction and flat sales.​[5]

Facts: The firm initially filed returns disclosing lower income. Subsequently, based on an approved valuer’s report, revised returns were filed with significantly higher construction costs, reducing income. The Assessing Officer treated the difference between original and revised returns as concealed income and levied penalties under Section 271(1)(c).​

Concurrent Criminal Proceedings: Following directions from the Chief Commissioner of Income Tax, four criminal complaints were filed alleging offenses under:

• Section 276C(2) (willful attempt to evade tax)
• Section 278B (abetment of false returns)
• Sections 120B, 34, 193, 196, and 420 of the Indian Penal Code (conspiracy, falsification of documents)​

ITAT Decision: The Income Tax Appellate Tribunal concluded that there was no concealment of income. The ITAT found that the additions were based on a settlement between the assessee and the Department representing a voluntary offer. Following the principle in Sir Shadi Lal Sugar Mills, the ITAT cancelled the penalties.​

Penalty Cancellation: Following the ITAT’s order, the Assessing Officer cancelled the penalties levied under Section 271(1)(c).

Criminal Proceedings: Despite the ITAT’s order and penalty cancellation, the criminal proceedings continued. The appellants filed a Criminal Revision Petition before the High Court, which was dismissed. They then moved to the Supreme Court.

Supreme Court’s Ruling on Simultaneity of Penalty and Criminal Proceedings under Income tax 

In its landmark judgment, the Supreme Court made the following pronouncement:​

“27. It is settled law that levy of penalties and prosecution under Section 276C are simultaneous. Hence, once the penalties are cancelled on the ground that there is no concealment, the quashing of prosecution under Section 276C is automatic. [Emphasis supplied]”​ [6]

This statement establishes two critical principles:

1. Simultaneity Doctrine: Penalty proceedings and criminal prosecution are simultaneous proceedings—they occur together, addressing the same conduct from different angles.
2. Automatic Quashing: When penalties are cancelled (implying no concealment), criminal prosecution is automatically quashed without requiring a separate petition.

The Binding Nature of Appellate Tribunal Findings

The Supreme Court further held:​ [5][6]

“28. In our opinion, the appellants cannot be made to suffer and face the rigours of criminal trial when the same cannot be sustained in the eye of the law because the entire prosecution in view of a conclusive finding of the Income Tax Tribunal that there is no concealment of income becomes devoid of jurisdiction and under Section 254 of the Act, a finding of the Appellate Tribunal supersedes the order of the Assessing Officer under Section 143(3) more so when the Assessing Officer cancelled the penalty levied.” [Emphasis supplied]​

This pronouncement establishes:

1. Jurisdictional Issue: Once the ITAT finds no concealment, the entire prosecution basis collapses, making the criminal prosecution “devoid of jurisdiction.”
2. Supersession of Order: The ITAT’s finding is conclusive and binding on criminal courts. The criminal court cannot reexamine or override the ITAT’s factual determination.
3. Finality of Finding: The ITAT’s order is final on the question of concealment of income. A criminal court is bound by this finding when conducting criminal prosecution based on the same facts.

Practical Impact: Automatic Relief Without Separate Petition

The Supreme Court explicitly held: ​[6]

“It is apparent that the Supreme Court has clearly held that once the penalties are cancelled on the ground that there is no concealment, the quashment of the prosecution under Section 276C is automatic.”​

This means: An assessee whose penalties are cancelled need not separately petition the criminal court to quash the prosecution. The quashing is automatic and ipso facto (by operation of law).

Part III: Chhattisgarh High Court Application of K.C. Builders

The Prashant Kumar Mishra Case

The Chhattisgarh High Court in Prashant Kumar Mishra (Chhattisgarh HC) applied K.C. Builders principles directly and unambiguously.​ [7]

Facts: A penalty was imposed on the assessee for concealment of income. However, the CIT(Appeals) allowed the appeal and set aside the penalty on the finding that the assessee did not conceal income. Despite this, criminal proceedings under Sections 276C and 277 of the Income Tax Act continued before the Chief Judicial Magistrate. [7]

Court’s Holding: The High Court held:​

“Held, that in view of the position that the penalty levied on the petitioner was set aside, the criminal proceedings pending on the file of CJM may also be quashed… The finding of the Appellate Tribunal was conclusive and the prosecution cannot be sustained since the penalty after having been decided by the complainant following the Appellate Tribunal’s order, no offence survives under the Income Tax Act and thus quashing of prosecution is automatic.” [7]

The Court emphasized:​

“The High Court relied on K.C. Builders v. CIT, wherein the Supreme Court held that ‘once the finding of concealment and subsequent levy of penalties under Section 271(1)(c) of the Act has been struck down by the Tribunal, the assessing officer has no other alternative except to correct his order under Section 154 of the Act as per the directions of the Tribunal.'”​

The Madhya Pradesh High Court Reaffirmation (July 2024)

A more recent Madhya Pradesh High Court judgment (July 20, 2024) in a Criminal Revision Petition reaffirmed K.C. Builders with compelling clarity: ​[6]

“Hence, once the penalties are cancelled on the ground that there is no concealment, the quashing of prosecution under Section 276C is automatic. In such circumstances, this Court has no hesitation to hold that the criminal prosecution of the petitioner has already come to an end, however, to give it stamp of approval to such quashment, it is directed that the order dated 31.01.2018 shall stand quashed and consequently, the criminal prosecution is also hereby quashed.”​

Part IV: The Competing Doctrine of Independence

The Supreme Court’s Caveat: Independent Proceedings Under Sasi Enterprises

However, there is a seemingly contradictory line of Supreme Court authority. In Sasi Enterprises v. ACIT (2014) 5 SCC 139, the Supreme Court held:​

“The prosecution in criminal law and proceedings arising under the Act are undoubtedly independent proceedings and, therefore, there is no impediment in law for the criminal proceedings to proceed even during the pendency of the proceedings under the Act.”​[8]

Key Clarification: This judgment concerns Section 276CC (failure to file returns), not Section 276C (willful evasion of tax).

Section 276CC provides: “If a person wilfully fails to furnish in due time the return of income which he is required to furnish under sub-section (1) of section 139 or by notice given under section 142 or section 148… he shall be punishable…”​ [8]

The critical distinction is: The offense of non-filing is complete and independent of the assessment proceedings. Whether or not an assessment is finalized, the act of failing to file the return is an independent offense.​

Distinguishing Between Section 276C and Section 276CC

The Madras High Court in a 2025 judgment made this distinction crystal clear:​

“Reliance placed by the taxpayer on the Hon’ble Supreme Court in the case of K.C. Builders cannot be applied to the case on hand since the taxpayer failed to file the tax return and concealed the income. The said judgment stating that once the penalties are cancelled on the ground that there is no concealment, the quashing of prosecution under Section 276C of the IT Act is automatic, is not applicable to the case on hand. Mens rea is categorically proved against the taxpayer. It was found that there was concealment of income by the taxpayer.”​ [9]

The subtle but critical point: K.C. Builders applies when the basis for the charge—concealment of income—is negated by the appellate tribunal. If the tribunal confirms concealment despite modifying the quantum or other aspects of assessment, K.C. Builders does not apply.

The Supreme Court’s Position in Income Tax v. Bhupen Champak Lal Dalal

In Income Tax v. Bhupen Champak Lal Dalal, AIR 2001 SC 1096, the Supreme Court provided nuance:​ [8]

“The prosecution in criminal law and proceedings arising under the Act are undoubtedly independent proceedings and, therefore, there is no impediment in law for the criminal proceedings to proceed even during the pendency of the proceedings under the Act. However, a wholesome rule will have to be adopted in matters of this nature where courts have taken the view that when the conclusions arrived at by the appellate authorities have a relevance and bearing upon the conclusions to be reached in the case necessarily one authority will have to await the outcome of the other authority.” [Emphasis supplied]​

This judgment recognizes:

1. Independence in Form: Criminal and tax proceedings are technically independent.
2. Interdependence in Substance: When appellate findings in tax proceedings have direct relevance to criminal proceedings, courts should exercise restraint and await appellate conclusions.
3. Discretionary Approach: The court has discretion to stay criminal proceedings pending appellate conclusions, but no legal bar prevents simultaneity.

Part V: The Recent Supreme Court Judgment on Criminal Prosecution (August 2025)

Vijay Krishnaswami Case: Reaffirming K.C. Builders Principles

A very recent Supreme Court judgment of August 28, 2025, by Justices J.K. Maheshwari and Vijay Bishnoi provides fresh clarity on Section 276C(1):​ [2]

“The Supreme Court on August 28, 2025 held that Section 276C(1) of the Income Tax Act is intended to deter and penalize wilful and deliberate attempts by an assessee to evade taxes, penalties and interest prior to their imposition or charging. The provision applies where there is a conscious and intentional effort to evade liability, distinguishing such conduct from bona fide errors or interpretational differences.”​

Prosecution Quashed in Settlement Case:

The Court examined the case of an assessee who had undergone settlement proceedings under Section 245C. After the Settlement Commission concluded proceedings, the Revenue continued criminal prosecution in defiance of CBDT Circular dated April 24, 2008, which directs automatic immunity from prosecution upon settlement.

The Court held:​

“The Court held that the prosecution had been launched contrary to the proviso to Section 245H(1) and in defiance of the binding Central Board of Direct Taxes circular dated April 24, 2008. The bench said such action could not be justified as the authorities failed to take into account their own circulars and procedural requirements. The Court observed, ‘Such an act cannot be construed in the right perspective and the Revenue have acted in blatant disregard to binding statutory instructions. Such wilful non-compliance of their own directives reflects a serious lapse, and undermines the principles of fairness, consistency, and accountability.'”​ [2]

This judgment demonstrates that courts will intervene when criminal prosecution is launched without proper legal foundation, even when the foundational civil proceedings (penalty/settlement) have concluded.

Part VI: Practical Scenarios Illustrating the Relationship

Scenario 1: Tribunal Finds No Concealment—Criminal Prosecution Must Be Quashed

Facts: An AO added Rs. 50 lakhs to income based on alleged concealment and levied penalty under Section 271(1)(c). Criminal prosecution was also initiated under Section 276C. The assessee appealed, and the ITAT found that the addition was based on legitimate business reason and there was no concealment.

Legal Position:

 Following K.C. Builders and the Chhattisgarh HC judgment: [7]

• The penalty is automatically cancelled
• The criminal prosecution is automatically quashed WITHOUT requiring a separate petition
• The assessee need not appear before the criminal court
• The criminal trial ceases​

Scenario 2: Tribunal Reduces Addition But Confirms Concealment

Facts: AO added Rs. 100 lakhs treating it as concealment. Tribunal reduces the addition to Rs. 60 lakhs BUT confirms that concealment existed.

Legal Position:

• The penalty is modified to Rs. 60 lakhs quantum but not cancelled
• Criminal prosecution CONTINUES because concealment is confirmed
• K.C. Builders does not apply (because concealment is not negated)
• Criminal prosecution proceeds to trial​[5]

Scenario 3: Penalty Cancelled by CIT(A), Criminal Prosecution Continues

Facts: An AO imposed penalty. CIT(A) cancelled it on ground that facts do not justify satisfaction of concealment. However, criminal proceedings continue.[7]

Legal Position:

• Following Chhattisgarh HC judgment: Criminal prosecution must be quashed
• The CIT(A)’s finding that concealment does not exist is binding
• The automatic quashing doctrine applies​

Scenario 4: Settlement Commission Grants Immunity, Revenue Prosecutes

Facts: Assessee applied for settlement under Section 245C. Settlement Commission accepted the settlement application. Under Section 245H and CBDT Circular, immunity from prosecution is granted. However, Revenue files criminal prosecution.[2]

Legal Position: Following the August 2025 Supreme Court judgment:

• Criminal prosecution is invalid
• Court will quash prosecution as it violates binding CBDT circulars
• Court will award damages for wrongful prosecution​

Scenario 5: Assessment Reopened, Fresh Penalty, Concurrent Criminal Proceedings

Facts: Original assessment made. Penalty imposed and criminal prosecution initiated. Subsequently, assessment is reopened under Section 147. In fresh assessment, AO again records satisfaction and imposes penalty. Criminal prosecution continues.

Legal Position:

• Fresh penalty in reopened assessment is independent and separate
• If fresh penalty is cancelled by appellate authority, criminal prosecution based on fresh satisfaction is quashed
• If original penalty was cancelled by appellate authority BUT fresh penalty survives, criminal prosecution based on original satisfaction is quashed but prosecution relating to fresh satisfaction may continue
• Courts apply fact-by-fact analysis​[6]

Scenario 6: Non-Filing of Return—Section 276CC Prosecution

Facts: Assessee failed to file return for Assessment Year 2022-23. Revenue initiated prosecution under Section 276CC. Assessee later files belated return under Section 139(4). Penalty proceedings are dropped.

Legal Position:

• The offense of non-filing is independent of penalty proceedings
• Dropping penalty does NOT automatically quash Section 276CC prosecution
• The crime was the failure to file—filing subsequently does not undo the failure​
• Criminal prosecution can proceed independently​

Distinction from K.C. Builders: K.C. Builders applies to concealment-based charges under Section 276C, not non-filing under Section 276CC.

Part VII: Procedural Aspects—Sanction for Prosecution

Sanction Requirement Under Section 276C(2)

Before criminal prosecution under Section 276C can be initiated, sanction is required from:

1. The Principal Commissioner or Commissioner of Income Tax, or
2. The Principal Director General or Director General of Income Tax (as the case may be)​

When Sanction Can Be Withdrawn

An important practical aspect: Can sanction be withdrawn after criminal prosecution has begun?

The answer is contextual:

1. Before Charge Sheet: Yes, sanction can be withdrawn, and if withdrawn, prosecution becomes invalid.
2. After Charge Sheet but During Trial: Generally, withdrawal is not possible without the court’s permission.
3. After Settlement/Penalty Cancellation: While sanction formally remains, courts will not permit prosecution to proceed when the factual foundation (concealment) is negated.​

Part VIII: The Question of Binding Effect—Appellate Tribunal vs. Criminal Court

Is ITAT Finding Binding on Criminal Court?

The Supreme Court in K.C. Builders held that the ITAT’s finding of no concealment is binding on the criminal court. This requires clarification:​

Nature of Binding Effect: The ITAT’s finding is binding as to facts, but the criminal court can reapply law to those facts.[5]

Example:

• ITAT Finds: No concealment of income; the difference between returned and assessed income was due to revised valuations communicated by the assessee.
• Criminal Court’s Role: The criminal court accepts this finding of fact. However, it could theoretically examine whether even accepting this fact, the conduct amounted to a wilful attempt to evade through some other means (e.g., falsification of documents).

However, in practice, once the ITAT negates concealment, criminal courts consistently hold that no offense survives.​

When Criminal Court Can Ignore ITAT Finding

The Madras High Court (2025) and Radheshyam Kejriwal principles suggest limited circumstances:​[9]

1. Technical vs. Substantive Grounds: If exoneration in appellate proceedings is on technical grounds (not on merit), prosecution may theoretically continue. However, this is a rare exception.
2. Different Ingredients: If criminal charge is based on a different ingredient (e.g., false verification under Section 277) than the tax proceeding, findings may not be binding.​
3. Different Parties: If criminal prosecution involves abettors or co-conspirators not party to tax proceedings, those parties’ conduct is subject to criminal court’s assessment.​

Part IX: Charges Beyond Section 276C—Sections 277 and 278B

Section 277: False Verification

Section 277 charges are distinct. A taxpayer could:

• Face penalty under Section 271(1)(c) for concealment AND
• Face prosecution under Section 277 for making false statements in verification

If the penalty for concealment is cancelled but false verification is independently proved, Section 277 prosecution can survive.​[3]

However, if the false verification charge is parasitic on the concealment finding, it falls when concealment is negated.

Section 278B: Vicarious Liability for Directors and Officers

Section 278B makes directors and officers of companies vicariously liable.​

Critical Defense: Section 278B(1) provides that an individual director/officer shall NOT be liable if they prove:[4]

1. The offense was committed without their knowledge, OR
2. They exercised all due diligence to prevent commission​

If criminal prosecution under 276C is quashed due to negated concealment, Section 278B charges against directors automatically fall as well.

However, if Section 278B charges are based on corporate negligence or internal controls failures, they may proceed independently.

Part X: The Concurrent Jurisdiction Framework

Departmental vs. Criminal Proceedings Can Run Simultaneously

A clarification must be made: Penalty proceedings (civil/administrative) and criminal proceedings CAN run simultaneously. There is no legal bar.​

The Supreme Court in Capt. M. Paul Anthony v. Bharat Gold Mines Ltd. (1999) 3 SCC 679 held: ​[6]

“Departmental proceedings and proceedings in a criminal case can proceed simultaneously as there is no bar in their being conducted simultaneously, though separately.”​

Exercise of Judicial Discretion

However, courts in individual cases may exercise discretion to stay departmental/penalty proceedings pending criminal trial if:

1. The same facts and evidence form the basis
2. Criminal proceedings involve grave charges
3. Continuing parallel proceedings may prejudice the accused’s defense​

But once criminal prosecution is negated by appellate tribunal findings, courts will not permit its continuation even if penalty was imposed.​[7]

Part XI: Mens Rea Requirements

Willful Attempt Required for Section 276C

The Supreme Court’s August 2025 judgment emphasized that Section 276C requires willful and deliberate attempt to evade.​[2]

Mere Mistake Not Sufficient: If an assessee made an honest mistake in computation leading to understatement of income, Section 276C does not apply.​

Intentional Wrongdoing Required: The prosecution must establish:

1. A positive act (not mere omission)​
2. Conscious intention to evade​
3. Knowledge that the act would evade tax​

Impact on Criminal Prosecution: Assessees prosecuted under Section 276C can argue in criminal court that they acted on honest interpretation and lacked mens rea. If successful, criminal conviction is not possible. However, this defense does not automatically affect penalty under Section 271(1)(c), which has a lower threshold.​[1]

Part XII: Recent Judicial Trends (2024-2025)

Increasing Judicial Scrutiny of Criminal Prosecution

Recent judgments show courts becoming increasingly stringent in examining whether criminal prosecution should proceed:

1. August 2025 Supreme Court: Quashed prosecution where settlement immunity was disregarded.​[2]
2. Madras High Court (2025): Confirmed that while proceedings are technically independent, criminal prosecution based on unproven concealment allegation cannot proceed.​
3. Chhattisgarh HC (July 2024): Reaffirmed automatic quashing doctrine even when criminal proceedings had advanced.​[6]

CBDT Circulars Gaining Statutory Force

The August 2025 judgment treated CBDT Circular No. 10/2016 (April 24, 2008) as “binding statutory instruction.” This suggests:​[2]

• CBDT directives on prosecution immunity are now treated with statutory force
• Revenue disregarding these circulars invites court intervention
• Procedural compliance before prosecution is critical​

Part XIII: Practical Checklist for Practitioners

For Assessees Facing Both Penalty and Criminal Prosecution under Income Tax:

•  Immediately challenge the penalty before CIT(A)/ITAT, as cancellation automatically quashes criminal prosecution
• Assert facts contradicting concealment at every stage—the appellate tribunal’s factual finding is binding on criminal court
• Reference K.C. Builders and recent judgments in criminal court, emphasizing automatic quashing doctrine
• Seek interim relief (stay) of criminal trial pending appellate determination of penalty, citing Bhupen Champak Lal Dalal principles
• Examine whether settlement opportunity exists under Section 245C and CBDT circulars, which grant immunity from prosecution
• Distinguish Section 276C (concealment-based) from Section 276CC (non-filing) if applicable
• Challenge sufficiency of mens rea in criminal court, emphasizing honest business judgment or bona fide interpretation
• Cite August 2025 Supreme Court judgment on strict mens rea requirement and Court’s intolerance of procedurally defective prosecution

For Revenue and Investigating Officers:

• Do NOT initiate criminal prosecution simultaneously with penalty without strong, conclusive evidence of willful evasion
• Ensure sanction is properly granted and documented before filing criminal complaint
• Align with CBDT circulars regarding settlement immunity and prosecution procedures
• Prepare criminal prosecution strategy on the assumption that appellate tribunal may negate concealment, making prosecution unviable
• For Section 276CC cases (non-filing): Prosecute independently, as this is less dependent on appellate tribunal conclusions
• Distinguish between penalties and prosecution: Even if penalty is upheld, ensure criminal prosecution is based on additional evidence of willful evasion, not just concealment finding

Conclusion: Simultaneity with Hierarchy

The relationship between penalty and criminal prosecution in income tax law is precisely captured by the phrase: “Simultaneous but hierarchical.”

They are simultaneous because both can proceed concurrently without legal impediment. However, they are hierarchical because the civil finding of concealment (or its absence) in the appellate process has decisive impact on criminal proceedings.

The Supreme Court’s doctrine in K.C. Builders—that penalty cancellation automatically quashes criminal prosecution—is now settled law affirmed by High Courts across jurisdictions and the August 2025 Supreme Court ruling. This doctrine provides a powerful protective mechanism for assessees facing criminal prosecution, making challenge to the underlying penalty the most strategic approach.

For tax practitioners, the critical insight is: In cases involving both penalty and criminal prosecution under Income Tax, the battle is primarily fought in the appellate tax proceedings. Success in negating concealment before ITAT automatically neutralizes the criminal charge, regardless of criminal court proceedings. This understanding has profound implications for litigation strategy and resource allocation.

Reference

[1]  Penalty u/s 271(1)(c): A Comprehensive Analysis Available at: https://itatonline.org/articles_new/penalty-us-2711c-a-comprehensive-analysis-k-c-singhal-advocate/

[2] Supreme Court clarifies scope of Section 276C(1) IT Act Available at: https://lawbeat.in/supreme-court-judgments/supreme-court-clarifies-scope-of-section-276c1-it-act-wilful-tax-evasion-must-be-proved-quashes-prosecution-in-settlement-case-1517865

[3] Sections 276C, 277 and 278 Available at: https://bcajonline.org/journal/offences-and-prosecution-sections-276c-277-and-278-wilful-attempt-to-evade-tax-false-verification-in-return-abetment-of-false-returns-condition-prece/

[4]Section 278B of the Income Tax Act Available at: 

https://www.drishtijudiciary.com/current-affairs/section-278b-of-the-income-tax-act

[5] KC Builders V Cit Available at: https://www.scribd.com/document/855639097/Kc-Builders-v-Cit

[6]AYUSH JAIN Versus UNION OF INDIA Available at: https://mphc.gov.in/upload/indore/MPHCIND/2021/MCRC/41735/MCRC_41735_2021_FinalOrder_20-07-2024.pdf

[7] Prosecution under Ss. 276-C and 277 of Income Tax Act doesn’t survive if penalty imposed on assessee is deleted by appellate authority…  Available at: 

https://www.scconline.com/blog/post/2019/07/10/chh-hc-prosecution-under-ss-276-c-and-277-of-income-tax-act-doesnt-survive-if-penalty-imposed-on-assessee-is-deleted-by-appellate-authority/

[8] STAY ON THE CRIMINAL TRIAL FOR WILFUL EVASION OF TAX UNDER SECTION 276(C) OF THE INCOME TAX ACT, 1961…. Available at: https://www.linkedin.com/pulse/stay-criminal-trial-wilful-evasion-tax-under-section-276c-dalmia

[9] Direct Tax Alert Available at: 

https://www.bdo.in/en-gb/insights/alerts-updates/direct-tax-alert-madras-hc-holds-that-income-tax-adjudication-proceedings-are-independent-from-cri

The post Penalty and Criminal Prosecution under Income Tax Act: Understanding the Hierarchical Relationship with Assessment Orders appeared first on Bhatt & Joshi Associates.

Introduction

In a significant ruling impacting individuals facing cheque dishonour cases while simultaneously undergoing personal insolvency proceedings, the Supreme Court of India has clarified the scope of the interim moratorium under Section 96 of the Insolvency and Bankruptcy Code, 2016 (IBC). In its judgment dated April 1, 2025, primarily addressing appeals like Rakesh Bhanot vs. M/S.Gurdas Agro Pvt. Ltd. (arising out of SLP (Crl.) No. 6087 of 2023), the Court held that this moratorium does not shield individuals (such as personal guarantors or directors) from criminal prosecution under Section 138 of the Negotiable Instruments Act, 1881 (NI Act).

This common judgment addresses a crucial conflict between the protective measures of the IBC and the punitive provisions of the NI Act concerning personal liability.

Background: Personal Insolvency vs. Cheque Dishonour Prosecution

The cases involved appellants/petitioners facing criminal trials under Section 138 read with Section 141 of the NI Act for cheque dishonour. These individuals, often directors or personal guarantors, had subsequently initiated personal insolvency resolution processes by filing applications under Section 94 of the IBC.

Filing a Section 94 application triggers an automatic interim moratorium under Section 96 IBC. This provision stays pending legal actions and prohibits new ones “in respect of any debt”. The appellants argued their Section 138 NI Act proceedings fell under this stay. Their requests were denied by lower courts, leading to the Supreme Court appeals.

Key Legal Issue: Can Section 96 IBC Moratorium Stay Section 138 NI Act Proceedings?

The Supreme Court identified the central issue in paragraph 4 of the judgment:

4. The common legal question that arises for consideration herein is, whether the proceedings initiated against the appellants / petitioners under Section 138 read with Section 141 of the N.I. Act, 1881 should be stayed in view of the interim moratorium under Section 96 IBC having come into effect upon the appellants / petitioners’ filing applications under Section 94 IBC.

Supreme Court’s Analysis and Reasoning

The Court undertook a detailed analysis, emphasizing the distinct nature of Section 138 NI Act proceedings compared to civil debt recovery actions.

Nature of Section 138 Proceedings:
The Court highlighted that NI Act proceedings target the act of dishonour, not just the debt itself. Paragraph 29 states:

29. … The protection is not available against penal actions, the object of which is to not recover any debt. This moratorium serves as a critical mechanism, allowing the debtor to reorganize their financial affairs without the immediate threat of creditor actions. The clear and unequivocal language of this provision reflects the legislative intent to provide a protective shield for debtors during the insolvency process.
    13. On the other hand, the proceedings under Section 138 of the N.I. Act, 1881, pertain to the dishonor of cheques issued by the respective appellants / petitioners in their personal capacity. These proceedings are distinct from the corporate insolvency proceedings and are aimed at upholding the integrity of commercial transactions by holding individuals accountable for their personal actions…

Interpreting the Scope of Section 96 Moratorium:
The Court focused on the limiting phrase “in respect of any debt” within Section 96. Paragraph 28 clarifies this interpretation:

28. … Upon filing of the application under section 94 [IBC], a moratorium comes into effect, designed to protect the debtors from any legal actions concerning their debts. Specifically, Section 96 IBC provides that any legal proceedings pending against the debtor concerning any debt shall be deemed to have been stayed. The term “any legal action or proceedings” does not mean “every legal action or proceedings”. In sub-clauses 96 (b) (i) and (ii), the term “legal action or proceedings” are followed by the term “in respect of any debt”. The term “legal action or proceedings” would have to be understood to include such legal action or proceedings relating to recovery of debt by invoking the principles of noscitur a sociius. The purpose of interim moratorium contemplated under Section 96 is to be derived from the object of the act, which is not to stall the proceedings unrelated to the recovery of the debt.

Further, paragraph 10.1 distinguishes the objective:

10.1. … The use of the words “all the debts” and “in respect of any debt” in Sub-section (1) of Section 96 is not without a purpose, as the moratorium is intended to offer protection only against civil claim to recover the debt. Hence, such period of moratorium prescribed under Section 14 or 96 is restricted in its applicability only to protection against civil claims which are directed towards recovery and not from criminal action.

Liability of Natural Persons (Directors/Guarantors):
The Court heavily relied on its previous rulings in P. Mohanraj v. Shah Brothers Ispat Pvt. Ltd. and Ajay Kumar Radheyshyam Goenka v. Tourism Finance Corporation of India Ltd., which established that even under a Section 14 IBC moratorium (for corporate insolvency), the criminal liability of individuals under Section 141 NI Act continues. The Court extended this principle to the Section 96 scenario.

Quoting its conclusion in P. Mohanraj, the Court stated in paragraph 31:

31. … This being the case, it is clear that the moratorium provision contained in Section 14 of the IBC would apply only to the corporate debtor, the natural persons mentioned in Section 141 continuing to be statutorily liable under Chapter XVII of the Negotiable Instruments Act.”

The Court also cited the Ajay Kumar Radheyshyam Goenka judgment in paragraph 16, quoting paragraph 75 from that decision:

16. … quoting para 75: “Thus, where the proceedings under Section 138 of the NI Act had already commenced and during the pendency the plan is approved or the company gets dissolved, the Directors and the other accused cannot escape from their liability by citing its dissolution. What is dissolved is only the company, not the personal penal liability of the accused covered under Section 141 of the NI Act. They will have to continue to face the prosecution…”

Final Determination on Stay Application:
Based on this reasoning, the Court concluded that the moratorium under Section 96 IBC cannot be used to halt criminal prosecution under the NI Act. Paragraph 17 states the opinion:

17. For the foregoing discussion, we are of the opinion that the object of moratorium or for that purpose, the provision enabling the debtor to approach the Tribunal under Section 94 is not to stall the criminal prosecution, but to only postpone any civil actions to recover any debt. The deterrent effect of Section 138 is critical to maintain the trust in the use of negotiable instruments like cheques in business dealings. Criminal liability for dishonoring cheques ensures that individuals who engage in commercial transactions are held accountable for their actions…

Paragraph 19 delivers the final verdict:

19. For the foregoing discussion, the prayer of the appellants / petitioners to stay the prosecution under Section 138 of the N.I. Act, 1881, relying on the interim moratorium under Section 96 IBC, cannot be entertained. Therefore, the judgments / orders passed by the different High Courts affirming the orders of the trial court, which had rightly refused to stay the section 138 proceedings, need not be interfered with by us.

Key Takeaways: Section 96 IBC Moratorium vs. Section 138 NI Act Liability

• Section 138 NI Act Prosecution Continues: Individuals facing cheque dishonour charges cannot halt these criminal proceedings using the Section 96 IBC interim moratorium triggered by their personal insolvency application.
• Moratorium Limited to Civil Debt Recovery: The Section 96 moratorium stays legal actions specifically aimed at recovering debt, not penal actions like Section 138 NI Act prosecution.
• Personal Criminal Liability Persists: Insolvency proceedings under IBC do not absolve individuals (directors, guarantors, signatories) of their personal criminal liability under Section 141 NI Act for cheque dishonour.
• Dual Objectives Upheld: The judgment balances the IBC’s goal of financial resolution with the NI Act’s goal of ensuring commercial integrity and accountability for cheque transactions.

Conclusion 

The Supreme Court’s decision in the Rakesh Bhanot batch of cases provides definitive clarity: the protective shield of the Section 96 IBC interim moratorium does not extend to criminal prosecution under Section 138 of the Negotiable Instruments Act. Individuals remain personally accountable for cheque dishonour offences, irrespective of their concurrent personal insolvency proceedings. This ruling underscores the distinct nature of criminal liability and its separation from the civil debt resolution processes governed by the IBC.

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Introduction 

In a significant and unprecedented decision, the Supreme Court of India has nullified the Chandigarh mayoral election, overturning the victory of Bharatiya Janata Party (BJP) candidate Manoj Sonkar as the mayor of the Chandigarh Municipal Corporation. The three-judge Bench, led by Chief Justice of India Dr D.Y. Chandrachud, took a strong stance against the unlawful actions of the returning and presiding officer, Anil Masih, who was found to have tampered with ballot papers during the counting process.

Invalidation of Ballots and Election Quashed 

The Supreme Court held that Anil Masih had unlawfully altered the course of the mayoral elections by invalidating eight ballot papers cast in favor of the Aam Aadmi Party (AAP) candidate, Kuldeep Kumar. While refraining from quashing the entire election process, the Bench invoked its inherent power under Article 142 of the Constitution to treat the eight wrongly invalidated ballots as valid. As a result, AAP’s Kuldeep Kumar was declared the duly elected mayor of the municipal corporation with 20 votes, surpassing the BJP candidate’s 16 votes.

Show Cause Notice and Criminal Prosecution for Anil Masih

The Bench issued a show cause notice to Anil Masih, asking him to explain why he should not be prosecuted for perjury. Masih had initially admitted to putting marks on eight ballot papers but claimed it was due to defacement. However, upon physical verification, the court found no evidence of defacement, leading to doubts about Masih’s credibility. The court ordered criminal prosecution against Masih under section 340 of the Code of Criminal Procedure for allegedly making false statements.

Background of the Chandigarh Mayoral Election Case

The controversy began earlier this month when the Supreme Court criticized Anil Masih for defacing ballot papers in favor of the BJP candidate, calling it a “mockery of democracy.” The court ordered the sequestration of the entire record of the Chandigarh mayor elections and deferred a scheduled municipal corporation meeting. AAP candidate Kuldeep Kumar had filed a petition against the Punjab and Haryana High Court’s refusal to grant interim relief in the case.

Allegations of Ballot Tampering and Video Evidence

Kumar alleged that Masih tampered with ballot papers during the counting process, as seen in a widely reported video. The video showed Masih marking ballot papers with a pen, leading to the invalidation of eight votes for Kumar. Despite raising concerns in the Punjab and Haryana High Court, Kumar received no interim relief, prompting him to approach the Supreme Court.

Supreme Court’s Strong Criticism and Verdict

The Supreme Court strongly criticized Masih’s actions, declaring them a “serious misdemeanour.” The court emphasized that Masih had unlawfully altered the mayoral election and expressed falsehood in his statement before the court. The verdict not only invalidated the election results but also exposed Masih’s deliberate efforts to favor the BJP candidate.

Chandigarh Mayoral Election: Safeguarding Democracy – Conclusion

The Supreme Court’s decision to nullify the Chandigarh mayoral election underscores the importance of upholding democratic principles and fair electoral processes. The court’s strong stance against ballot tampering and its commitment to preserving the integrity of elections send a clear message about the consequences of electoral misconduct. The case serves as a reminder that any attempts to undermine the democratic process will face severe legal scrutiny and consequences.

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Section 482 of Cr.P.C. should be used sparingly for the purpose of preventing abuse of the process or otherwise to secure the ends of justice.

Introduction

The Indian judicial system has witnessed a concerning trend over the past few decades where parties involved in civil disputes increasingly resort to criminal complaints as a tool for settling what are fundamentally civil matters. This practice has become particularly prevalent in disputes concerning family inheritance, property partitions, contractual obligations between businesses, and commercial transactions. The phenomenon of giving a “criminal color” to civil disputes represents not merely a procedural irregularity but a systematic abuse of the legal process that burdens courts, harasses innocent parties, and undermines the very purpose of criminal law.

The primary motivation behind this trend appears to be the relatively quicker relief available through criminal prosecution compared to the protracted civil litigation process. When a party files a criminal complaint alongside a civil suit, the immediate consequences such as arrest, investigation, and the social stigma attached to criminal proceedings create significant pressure on the accused party to settle disputes on terms favorable to the complainant. This misuse of criminal law as a debt recovery mechanism or bargaining tool has prompted Indian courts to develop robust jurisprudence to identify and quash such frivolous proceedings.

Legal Framework for Quashing Criminal Proceedings

The primary legislative provision that empowers High Courts to intervene in cases where civil disputes are given criminal color is Section 482 of the Code of Criminal Procedure, 1973. This provision grants inherent powers to the High Court to make such orders as may be necessary to prevent abuse of the process of any court or otherwise to secure the ends of justice. The language of Section 482 deliberately provides wide discretion to High Courts, recognizing that rigid procedural rules cannot anticipate every situation where judicial intervention becomes necessary to prevent miscarriage of justice.

The Supreme Court has consistently emphasized that this power must be exercised sparingly and with great caution. The jurisdiction under Section 482 is not meant to be invoked routinely but only in exceptional circumstances where continuing the criminal proceedings would constitute a manifest injustice. Courts must carefully balance the need to prevent abuse of process against the principle that criminal complaints should not be stifled at the preliminary stage without proper investigation.

Additionally, Article 226 of the Constitution of India confers writ jurisdiction upon High Courts, which can also be invoked to quash criminal proceedings that are fundamentally civil in nature. The constitutional courts have developed a substantial body of jurisprudence delineating the circumstances under which such extraordinary jurisdiction should be exercised.

Judicial Principles for Identifying Criminal Color

The Jharkhand High Court in Shiv Shankar Prasad and another versus The State of Jharkhand established that while civil and criminal proceedings can certainly run simultaneously, there must exist some element of genuine criminality in the allegations beyond mere breach of contract or civil wrong.[1] The court recognized that certain actions may constitute both civil wrongs and criminal offenses, but the mere possibility of a civil remedy does not automatically preclude criminal prosecution. However, when the dispute is essentially civil in character and lacks the essential ingredients of criminal offense, continuation of criminal proceedings amounts to harassment.

The Supreme Court in Usha Chakraborty versus State of West Bengal delivered a significant judgment addressing this issue comprehensively.[2] The court held that criminal proceedings can be quashed when it becomes evident that the attempt was to give a “cloak of criminal offence” to a dispute which is essentially of civil nature. In this case, the appellants had approached the Calcutta High Court seeking quashment of an FIR registered under Sections 323, 384, 420 and 120B of the Indian Penal Code, 1860. The High Court had initially declined to exercise jurisdiction, holding that prima facie materials made out a case for investigation.

However, the Supreme Court reversed this finding and emphasized that jurisdiction under Section 482 must be exercised to secure the ends of justice and prevent abuse of process. The court observed that when examining whether to quash criminal proceedings, courts must look beyond the surface allegations and examine whether the complaint discloses essential ingredients of the alleged criminal offenses or merely seeks to use criminal law as a tool for civil dispute resolution.

Landmark Supreme Court Decisions

In Paramjeet Batra versus State of Uttarakhand and Others, the Supreme Court laid down important guidelines that have subsequently been followed in numerous cases.[3] The court held that the High Court must examine whether a dispute which is essentially of civil nature has been given a cloak of criminal offense. This judgment reinforces the principle that courts should be vigilant against attempts to give a criminal color to civil disputes, ensuring that criminal proceedings are not misused as a tool to pressure parties in matters that are fundamentally civil. The judgment emphasized that in situations where a civil remedy is available and has actually been adopted by the parties, the High Court should not hesitate to quash criminal proceedings to prevent abuse of the court’s process.

The case of Nagender Yadav versus State of Telangana further strengthened this principle by holding that while no person with a legitimate grievance should be prevented from seeking remedies available in criminal law, a complainant who initiates or persists with prosecution while being fully aware that the criminal proceedings are unwarranted and the remedy lies only in civil law should be made accountable at the end of such misconceived criminal proceedings.[4] This judgment introduced the concept of accountability for complainants who misuse criminal law, suggesting that merely discontinuing frivolous proceedings should not be the end of the matter.

The Supreme Court in Mitesh Kumar J. Sha versus The State of Karnataka and Others dealt with a complex scenario involving allegations of criminal breach of trust and cheating against a builder company.[5] The facts revealed that the builder company had executed sale deeds for thirteen flats while being entitled to sell only nine flats. Arbitration proceedings had been initiated simultaneously wherein the arbitrator partly allowed the claims of both parties. The arbitrator held that unilateral revocation of the General Power of Attorney was illegal and that the company had the right to effectuate sale agreements.

The crucial question before the Supreme Court was whether pending civil proceedings and arbitration automatically precluded criminal prosecution. The court held that the cause of action in civil and criminal proceedings are separate and independent of each other. Liability for breach of agreement is independent of the liability for commission of offenses under Sections 405 and 415 of the Indian Penal Code. The court emphasized that criminal proceedings cannot be quashed merely because a civil remedy exists if the allegations disclose essential ingredients of criminal offenses. This judgment clarified that not every civil dispute given criminal color can be quashed, but only those where criminal allegations are manifestly false or lack essential ingredients of the alleged offense.

Application of Principles in Specific Contexts

In Randhir Singh versus The State of Uttar Pradesh and Others, the Supreme Court examined a situation where a criminal complaint was filed after twelve years of execution of registered sale deeds.[6] The court noted that it was not concerned with underlying civil disputes between parties which were subject matter of diverse civil proceedings pending in civil courts. However, the court found that the case represented abuse of process of law as the complainant was neither party to the sale deeds nor a member of the society concerned, and had waited twelve years before filing the complaint. The court allowed the appeal and quashed the criminal proceedings, observing that inherent power under Section 482 must be exercised in exceptional cases with great care.

The case of Vesa Holdings Private Limited versus State of Kerala established an important principle that the same set of facts may make out both a civil wrong and a criminal offense.[7] The court held that merely because a civil remedy may be available to the complainant cannot be a ground to quash criminal proceedings. The real test is whether the allegations in the complaint disclose the criminal offense of cheating or not. This judgment emphasized that courts must examine the specific ingredients of the alleged criminal offense rather than simply noting the availability of civil remedies.

In Syed Yaseer Ibrahim versus State of Uttar Pradesh and Another, the Supreme Court found that none of the ingredients of the offense punishable under Section 420 of the Indian Penal Code existed even after investigation was complete.[8] Neither the FIR nor the charge sheet contained any reference to the essential requirements underlying Section 420, which requires proof of dishonest intention to deceive from the inception of the transaction. The court held that continuation of prosecution would amount to abuse of process where a civil dispute is sought to be given the color of criminal wrongdoing.

Essential Ingredients of Criminal Offenses

For criminal proceedings to be sustained, the allegations must disclose essential ingredients of the specific offenses alleged. Section 420 of the Indian Penal Code, which is frequently invoked in commercial disputes, requires proof of dishonest or fraudulent intention from the very beginning of the transaction. A mere breach of contract or failure to fulfill contractual obligations does not automatically constitute cheating unless it can be demonstrated that the accused never intended to fulfill the obligation and entered into the transaction with dishonest intent to deceive.

Similarly, Section 406 of the Indian Penal Code dealing with criminal breach of trust requires that property must have been entrusted to the accused in a fiduciary capacity and that the accused must have dishonestly misappropriated or converted such property to his own use. Ordinary disputes regarding ownership of property or interpretation of contractual terms do not fall within the ambit of criminal breach of trust.

Courts have repeatedly emphasized that the distinction between civil wrongs and criminal offenses must be maintained. While both may arise from the same facts, criminal law requires proof of mens rea or guilty mind, which is absent in cases of simple breach of contract or civil disputes regarding property rights. The burden of establishing criminal intent lies on the prosecution, and when allegations fail to disclose such intent, continuation of criminal proceedings becomes unjustified.

Procedure for Seeking Quashing

When a party believes that criminal proceedings have been initiated to give criminal color to a fundamentally civil dispute, the appropriate remedy is to approach the High Court under Section 482 of the Code of Criminal Procedure or under Article 226 of the Constitution. The application must be supported by material demonstrating that the allegations, even if taken at face value, do not constitute the ingredients of the alleged criminal offense, or that the proceedings are being pursued with malicious intent to harass the accused.

High Courts while examining such applications must adopt a cautious approach. The court does not conduct a mini-trial or examine evidence in detail at this stage. The focus remains on whether the allegations in the FIR or complaint, if accepted in their entirety, make out a case for the alleged criminal offense. If the allegations prima facie disclose a criminal offense, the court would ordinarily not interfere and would relegate the accused to trial where evidence can be properly examined.

However, when it is manifest from the very allegations that no criminal offense is made out and that the complaint is merely an attempt to use criminal law as a tool for recovery or settlement of civil disputes, the High Court can exercise its extraordinary jurisdiction to quash the proceedings. The court may also consider factors such as pendency of civil proceedings between the same parties on identical facts, delay in filing the criminal complaint, and conduct of the parties to determine whether the criminal proceedings constitute abuse of process.

Balancing Rights and Preventing Abuse

The jurisprudence developed by Indian courts seeks to balance two important principles. On one hand, genuine victims of criminal offenses must not be denied access to criminal justice system merely because a civil remedy also exists for the same wrong. On the other hand, criminal law must not be allowed to become a tool for harassment or coercion in essentially civil disputes. This balance is achieved by carefully examining whether the allegations disclose essential ingredients of criminal offenses and whether there exists any element of genuine criminality beyond mere breach of contractual or civil obligations.

Courts have also recognized that the delay and expense associated with defending criminal proceedings creates significant pressure on accused parties to settle civil disputes on disadvantageous terms. This coercive potential of criminal law is precisely what the doctrine against giving criminal color to civil disputes seeks to prevent. When criminal law is used as a debt recovery mechanism or as leverage in commercial negotiations, it defeats the very purpose of criminal justice system which exists to punish offenses against society rather than to resolve private disputes.

Conclusion

The principle that criminal law should not be used to give color to civil disputes represents a crucial safeguard against abuse of the legal process. Indian courts have developed robust jurisprudence through landmark judgments that provide clear guidelines for identifying cases where criminal proceedings constitute harassment rather than genuine prosecution. The power under Section 482 of the Code of Criminal Procedure, though discretionary and to be exercised sparingly, serves as an important tool to prevent misuse of criminal law.

The essential test remains whether the allegations, even if accepted in entirety, disclose the necessary ingredients of the alleged criminal offense or merely describe breach of civil obligations. When disputes are fundamentally civil in nature, involving interpretation of contracts, property rights, or commercial transactions, and lack elements such as dishonest intention from inception or criminal mens rea, courts must not hesitate to quash such proceedings to prevent the misuse of criminal law. This is particularly important in cases where parties attempt to give a criminal color to civil disputes, as such tactics not only burden the judicial system but also subject innocent parties to harassment. This jurisprudence continues to evolve as courts balance the need to protect genuine complainants while preventing abuse of the legal process through frivolous criminal complaints.

References

[1] Shiv Shankar Prasad and Anr. v. The State of Jharkhand, Jharkhand High Court. Available at: https://indiankanoon.org/ 

[2] Usha Chakraborty v. State of West Bengal, (2022) SCC Online SC 1404. Available at: https://www.livelaw.in/top-stories/supreme-court-criminal-proceedings-civil-dispute-usha-chakraborty-state-west-bengal-207633 

[3] Paramjeet Batra v. State of Uttarakhand & Ors., (2013) 9 SCC 673. Available at: https://indiankanoon.org/doc/98687642/ 

[4] Nagender Yadav v. State of Telangana, (2022) SCC Online SC 1186. Available at: https://www.scconline.com/ 

[5] Mitesh Kumar J. Sha v. The State of Karnataka & Ors., (2021) SCC Online SC 827. Available at: https://www.livelaw.in/top-stories/supreme-court-breach-contract-not-cheating-mitesh-kumar-shah-184374 

[6] Randhir Singh v. The State of U.P. & Ors., (2021) SCC Online SC 574. Available at: https://www.livelaw.in/top-stories/supreme-court-criminal-proceedings-weapons-of-harassment-randheer-singh-183835 

[7] Vesa Holdings Private Limited v. State of Kerala, (2015) 8 SCC 293. Available at: https://indiankanoon.org/doc/56501200/ 

[8] Syed Yaseer Ibrahim v. State of Uttar Pradesh & Anr., (2022) SCC Online SC 1563. Available at: https://www.scconline.com/ 

[9] Bar and Bench, “Criminal colour to civil dispute: Supreme Court on abuse of law,” Available at: https://www.barandbench.com/news/litigation/criminal-colour-civil-dispute-abuse-of-law-supreme-court 

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