The petitioner challenged initiation of proceedings under Section 74 after scrutiny proceedings under Section 61 had already been dropped. The factual background showed that the reply to scrutiny notice was accepted and proceedings were concluded, yet a subsequent show cause notice was issued on the same allegations.
The Court held that once proceedings under Section 61 are concluded by accepting the explanation, initiation of proceedings under Section 74 on identical grounds is impermissible. The impugned order was set aside.