ASHIRVAD ENTERPRISES vs STATE OF BIHAR

The Supreme Court addressed the prosecution of the appellants under Section 276C of the Income Tax Act, 1961 for willful tax evasion and false statements. The Court held that the proceedings could continue despite the pending applications for settlement before the Settlement Commission, as no immunity had been granted at that stage. The Court emphasized that any immunity from prosecution is conditional and contingent upon compliance with the Settlement Commission's requirements, as outlined in Section 245H of the Act.