Initiation of prosecution proceedings u/s 276CC in absence of any demand is unsustainable-in-law

Gunwant Singh Saluja Vs State of Jharkhand (Jharkhand High Court) Jharkhand High Court held that initiation of prosecution proceedings under section 276CC of the Income Tax Act in absence of any demand, as demand adjusted against refund, is bad-in-law and liable to be set aside. Facts- The complaint case was filed by opposite party no.2 alleging therein that a search u/s. 132 of the Income Tax Act was undertaken in Mongia Group of cases by the Investigating Wing. During the course of search operation, various incriminating documents relating to the petitioner were found and seized. Accordingly...