Ashirvad Enterprises And Ors vs State Of Bihar & Anr

The Supreme Court addressed the issue of prosecution under Section 276C of the Income Tax Act, 1961 for willful tax evasion. The Court held that the immunity granted by the Settlement Commission under Section 245H is conditional and does not halt ongoing proceedings unless the conditions are fulfilled. The Court affirmed the High Court's decision to continue the prosecution as no immunity had been granted at the relevant time, thus upholding the legal principle that pending applications for settlement do not automatically stay criminal proceedings.