a) The CIT challenged the order passed by the Settlement Commission (‘SetCom’). Such order was challenged on the ground that the order passed by Set Com was without jurisdiction as the assessee had failed to comply with the statutory requirements under Section 245-C which stipulates that there must be "full and true disclosure" in the Settlement Applications;
b) It was further stated that when the Set Com had made further addition, it was clear that there was no full or true disclosure of the statement by the assessee for which the Commission should not have allowed the application of the assessee.
The High Court held as under:
1) The Set Com has also got powers to find out if at all any income left out or could not be disclosed by the assessee to come to a mechanism of settlement.
2) The settlement is not only covered by the dispute which arose before them but also for the dispute yet to come. So the Commission has got wide power to consider the income disclosed, add additional income after due investigation and also to add any income which is found to be valid as per report submitted by the Department and finally settle the tax payable by the assessee.  73 taxmann.com 93 (Orissa)