JUDGMENT

B.P. Jeevan Reddy, J.-The Commissioner of Income Tax, Calcutta (Central) has preferred these appeals against the judgment and order dated March 1, 1979 made by the Settlement Commission under Section 245-D of the Income Tax Act [the Act]. The respondent-assessee, Paharpur Cooling Towers Private Limited, is engaged in the manufacture of cooling towers and their parts. For the Assessment Years 1970-71 to 1974-74 [five years], it had filed its returns. [The accounting year was the year ending 31st October.] For Assessment Year 1975-76, the assessee had filed its return. It was pending. While so, on October 27, 1976 and on the following dates, searches were conducted by the Director of Inspection and his officers in the premises of the assessee at Calcutta, Bombay and Delhi. The assessee s factories and the residential premises of the Managing Director, Sales Manager, Directors and their associates were also searched simultaneously. A number of documents were seized.

2. On June 24, 1977, the assessee approached the Settlement Commission [Commission] with an application under Section 245-C of the Act. The application was made in the prescribed proforma. Against Column No. 5 "Ass