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TMI Blog2022 (12) TMI 167X X X X Extracts X X X X X X X X Extracts X X X X ..... es where prosecution has been filed by the department and is pending in the Court , then in that eventuality this condition falls in exception to Circular No. 3 of 2018 dated 11.07.2018. Thus in our view, since assessment year 2010-11 regarding which prosecution has already been launched by the Department falls under the exception clause and thus the appeal for A.Y. 2010-11 bearing ITA No. 592/JP/2015 could not have been dismissed on account of low tax effect, therefore, in our view, the decision to dismiss the appeal of the revenue on low tax effect by ignoring the exception clause of CBDT Circular is an error which is apparent on record. Therefore, we recall the order [ 2019 (8) TMI 1848 - ITAT JAIPUR] and restore the appeal filed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ereafter, the assessee approached the Hon'ble Rajasthan High Court for stay of proceedings and the Hon'ble High Court has granted stay on prosecution proceedings vide order dated 21.02.2019. It was also submitted by ld. D/R that at the time of passing the order in ITA No. 592 & 593/JP/2015, it was categorically mentioned by the Bench that the Department is at liberty to file the Miscellaneous Application in case the tax effect in these appeal are found to be more than Rs. 50,00,000/- or the case falls in any of the exceptions of the Circular. According to ld. D/R, since the prosecution was pending against the assessee company as well as the Directors, therefore, this case falls under the exception and thus could not be dismissed on account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pany and its erstwhile and present Directors was filed before the Economic Offence Court, Jaipur in March, 2018 under section 276C(2) read with section 278B for A.Y. 2010-11 after taking approval from the then PCIT, Ajmer and the assessee thereafter approached the Hon'ble Rajasthan High Court for granting of stay and ultimately the Hon'ble High Court has granted stay on prosecution vide order dated 09.05.2018 and further order dated 21.02.2019. However, merely granting of stay does not mean that the prosecution launched by the Department has come to an end. The requirement of the Circular is very clear wherein as per clause (f) it has been categorically mentioned that "cases where prosecution has been filed by the department and is pending ..... X X X X Extracts X X X X X X X X Extracts X X X X
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