ORDER :

Ujjal Bhuyan, J.

Heard Mr. J.V. Prasad, learned Standing Counsel, Income Tax Department appearing for the petitioner and Mr. M.Naga Deepak, learned counsel for respondent No.2 – assessee.

2. This writ petition has been filed by the Commissioner of Income Tax (Central), Basheerbagh, Hyderabad, assailing the legality and validity of the order dated 18.03.2008 passed by the Income Tax Settlement Commission, Additional Bench, Chennai (briefly, ‘the Settlement Commission’ hereafter), in Settlement Application No.AP/HD51/06-07/18/IT.

3. Respondent No.2 is an assessee under the Income Tax Act, 1961 (briefly, ‘the Act’ hereinafter) and is engaged in the business of civil construction. It is stated that business activities of respondent No.2 is spread over the then State of Andhra Pradesh, Maharashtra and Goa.

4. On 16.12.2004, a search and seizure operation was carried out in the business and residential premises of respondent No.2 under Section 132 of the Act. That apart, survey was also c