Index: Source/Statements.cobra
===================================================================
--- Source/Statements.cobra	(revision 2285)
+++ Source/Statements.cobra	(working copy)
@@ -1083,7 +1083,7 @@
 				.throwError('Cannot return [expr.type.name] because "[curCodeMember.name]" is [suffix]')
 			expr.contextType = curCodeMember.resultType
 		else
-			if curCodeMember.resultType is not .compiler.voidType
+			if curCodeMember.resultType is not .compiler.voidType and  curCodeMember.resultType is not .compiler.passThroughType
 				.throwError('Return statement must return a [curCodeMember.resultType.name], or [curCodeMember.name] must have its return type removed.')
 		curCodeMember.hasReturnStmt = true
 		_backEndResultVarName = curCodeMember.backEndResultVarName
Index: Tests/320-misc-two/830-lambdas/300-lambdas-return.cobra
===================================================================
--- Tests/320-misc-two/830-lambdas/300-lambdas-return.cobra	(revision 0)
+++ Tests/320-misc-two/830-lambdas/300-lambdas-return.cobra	(revision 0)
@@ -0,0 +1,15 @@
+"""
+Ticket#197 spurious compile error on return in lambda/anon fn with no return
+"""
+sig Delg
+
+class DoX
+	def main is shared
+		i = 0
+		anon as Delg = do
+			if i > 7
+				return
+			assert i <=7 #print i 
+		
+		for i in 0: 10
+			anon()
Index: Developer/IntermediateReleaseNotes.text
===================================================================
--- Developer/IntermediateReleaseNotes.text	(revision 2285)
+++ Developer/IntermediateReleaseNotes.text	(working copy)
@@ -431,3 +431,5 @@
 * Fixed: An uncaught exception can occur for some library calls.
 
 * Fixed: Cannot instantiate generic params under some circumstances.
+
+* Fixed: Spurious compiler error in void anon method with a return. Ticket#197