Prosecution for TDS/TCS defaults: CIT(TDS) sanction and TRACES based Form T filing required within prescribed timelines. SOP mandates submission of prosecution proposals for TDS/TCS defaults in the prescribed Form 'T' with prior sanction from CIT(TDS). AOs must issue TRACES-generated show cause notices, collect and preserve specified prosecution documents, reconcile contested defaults, and forward complete proposals through the Range Head. CIT(TDS) examines material and explanations, may seek counsel opinion, issues speaking orders granting or dropping sanction, and entries at each stage must be recorded on TRACES; compounding applications may be processed while prosecution proposals remain pending.