- (1.) The Commissioner of Income Tax, Calcutta (Central) has preferred these appeals against the judgment and order dated 1/3/19799 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 1974-75 (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 27/10/1976and 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 24/6/1977, the assessee approached the Settlement Commission (Commission) with an application under Section 245-C of the Act. The application was made in the prescribed pro forma. Against Column No. 5 "assessment Years in connection with which the application for settlement is made", the assessee stated, "assessment Year 1975-76 and any other proceeding that may be decided by the Settlement Commission (now pending before the ITO) ". Against Column No. 8, "particulars of the matters to be settled", the assessee stated, "assessment of total income for Assessment Year 1975-76 and any other matter that may be decided by the Settlement Commission".
(3.) The application made by the assessee was forwarded to the Commissioner of Income Tax for his report under Section 245-D (1. In his report dated 6/7/19777, the Commissioner stated that "he has no objection to the application for settlement being processed with in respect of the Assessment Year 1975-76". By order dated 21/7/1977, the Commission admitted the application for settlement.;