S. Ravindra Bhat, J.

The Income Tax Department (hereinafter referred to as the Revenue) is aggrieved by the order of the Income Tax Settlement Commission (ITSC) dated 26.11.2014 which accepted the application made by the respondent assessees (collectively referred to as the Jakhotias) and issuing consequential directions.

2. The search was conducted in the premises of the assessee and related companies together with that of the Dalmia Group on 20.01.2012. Cash to the tune of Rs. 35 lakhs and an incriminating register containing details of cash loans was also recovered and seized. The first respondent, Om Prakash Jakhotia made a statement recorded under oath under Section 132(4) of the Income Tax Act. The relevant details disclosed over pricing of bags/sacks of cement sold to the Dalmia Group. The statement regarding loan credits inter alia, is as follows:

"No, the loan credits are genuine. However, it is not feasible to me to prove it. The raw materials I sold to various parties to" meet the unexplained expenditure of my business. This amount has not been entered into my