H1B stamping issue?

Hi

I have been arrested and then the case has been dismissed through court in india. Whether it will have an impact in my H1B visa ? Do I mention this in D160 FORM?

Most likely, there will be no issue.
You MUST mention it on the form where it was asked.

Also as a note: NEVER and EVER lie on any form or with any officer. Mostly common issues are recorded but not impacted on the approval decision. But if you lie anywhere and found guilty of that lie later, you will be rejected(it will impact even later too).