Judgment

Arijit Pasayat, J.—Challenge in this appeal is to the order passed by the Income Tax Settlement Commission, Additional Bench Calcutta (in short the ‘Commission’). By the impugned order it was held that the prayer made by the Commissioner of Income Tax, West Bengal-VIII, Calcutta (in short ‘CIT’) to declare the settlement order passed by the ­Commission on 18.9.1990 to be void and for withdrawing the benefits and immunities granted to the respondent-assessee was not acceptable. The order dated 18.9.1990 was passed under Section 245D(4) of the Income Tax Act, 1961 (in short the ‘Act’). The application by the CIT for declaration of the said order to be void was made purportedly under Section 245D(6) of the Act.

2. The controversy in the present appeal has arisen in the following factual background:

A search was conducted in the premises of the respondent (hereinafter referred to as the ‘assessee’) on 8.2.1989 and 9.2.1989 and certain seizures were made. The assessee filed an application for settlement in terms of Section 245C of the Act on 13.1.1989. It is relevant to note that application for settlement was made was the financial year 1985-86. The Settlement Commission passed a