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

The Supreme Court addressed the interpretation of Section 245BA and Section 245D of the Income-Tax Act in relation to the powers of the Income-Tax Settlement Commission. The Court held that assessment orders prior to the admission of a settlement application remain valid, but recovery proceedings cannot continue post-admission of the application, except for self-assessment tax. Additionally, the Court clarified that orders of lower authorities do not automatically get set aside by the Commission's order under Section 245D(4). The appeal was decided in favor of the principles established regarding the Settlement Commission's jurisdiction and authority.