The assessee deducted tax at source, but was not deposited in the Government treasury within the prescribed statutory time. These defaults were in respect of salary and other income. The Commissioner (TDS) passed the order of sanction for prosecution issued under section 279(1) of the Income-tax Act, 1961. On a writ petition the High Court held that questions and issues relating to grant and issue of sanction could be raised and decided during the trial and dismissed the petition. On a petition for special leave to appeal, dismissing the petition the Court held that though a huge amount of Rs.3,52,99,059 was deducted by the assessee-company as tax at source, it was not deposited in the Government treasury within the prescribed statutory time but after 11 months. Therefore, once there was a non-deposit, the necessary consequences shall follow including the prosecution. The submissions made on behalf of the assessee were all defences which were required to be considered by the trial court in the trial. By the time the assessee approached the High Court to set aside the sanction order under article 226 of the Constitution of India the magistrate had already taken cognizance and issued summons to the assessee. Therefore, the High Court was justified in observing that the assessee and the persons in charge were required to face the trial. No interference was called for by the court in exercise of powers under article 136 of the Constitution of India. (AY.2013-14)