Allowing the notice of motion the Court held that; once appeal is admitted on substantial questions of law, there is no justification for the Dy. CIT to threaten the appellant/applicant with any prosecution. Even if such prosecution is launched, the same shall not proceed till the
pendency of this Appeal. The Notice of Motion is made absolute in
terms of prayer clause (a). (ITA No. 785 of 2017, dt. 21.08.2017)
Deepak Fertilizer and Petrochemicals Corporation Ltd. v. ACIT (Bom.)(HC), www.itatonline.org Editorial. Also refer Suresh Company Pvt Ltd v PCIT ( ITA No 738 of 2016 , Notice of motion 84 of 2019 dt 25-1-2019 ) (Bom.) (HC)
S. 276C : Offences and prosecutions – Wilful attempt to evade tax –Penalty appeal is admitted by High Court-When the Appeal is admitted on substantial questions of law, there is no justification for the DCIT to threaten the assessee with prosecution- Even if such prosecution is launched, the same shall not proceed till the pendency of the appeal.[ S. 260A, 271(1)(c)]