The quantum and penalty appeal was pending before the Tribunal Principal Commissioner initiated criminal proceedings under section 276C(2) against assessee for evading tax. The assessee filed petition. Court held that when the demand raised by the Department is not crystallized as the appeal preferred by the petitioner is pending adjudication on merits. Considering the aforesaid factual scenario and since the petitioner has already deposited a substantial part of the demand raised by the Department, this Court is of the opinion that the continuation of the prosecution against the petitioner for the same allegations could not be permitted. Court also observed that the passing of this order will not preclude the Department from considering the case of the petitioner under the “Vivad se Vishwas Scheme” in view of the object of the scheme and particularly when the petitioner has already deposited a substantial part of the demand. (AY. 2011-12)