JUDGMENT :

Arijit Pasayat, J.

The basic issue involved in this appeal is whether the Settlement Commission (hereinafter referred to as 'the Com-mission') gets a complete role in total substitution of other authorities under the Income Tax Act, 1961 (in short 'the Act') and if so, for what purpose and to what extent. When this appeal was placed before a Bench of two learned Judges, it was considered appropriate to list the appeal before a larger bench than merely bench of two Judges.

2. That is how the matter was placed before us.

3. Factual backdrop in nutshell is as follows :

4. Respondent-Damani Brothers (hereinafter referred to as the 'assessee') filed an application for settlement before the Mumbai Bench of the Commission. Chairman of the Commission exercising power under Section 245 (BA) (5A) of the Act constituted a Special Bench vide order dated 18-9-1998 for adjudicating following three issues.

"1. Was the Special Bench of the Settlement Commission right in holding in the case Om Metals and Mineral Put. Ltd. (193 ITR 57 ITSC) that the assessment order passed by the assessing officer before the admission of the settlement application subsisted and recovery proceedings continued, e