Commissioner Of Income Tax, Mumbai vs M/S Damani Brothers

The Supreme Court addressed the powers of the Settlement Commission under the Income Tax Act, 1961, specifically regarding Sections 245D(4) and 220(2). The Court held that the orders of lower authorities do not automatically get set aside upon the Commission's order but are modified to align with it, affirming that the Commission has the authority to waive or reduce interest under Section 220(2). The Court concluded that recovery proceedings based on prior assessment orders can continue even after the admission of a settlement application, thereby clarifying the extent of the Commission's jurisdiction.