Settlement Commission had first heard objections raised by Commissioner (DR) against admission of application for settlement based on material other than report of Principal Commissioner and thereafter had afforded an opportunity of hearing to assessee to deal with objections raised by Commissioner (DR) and had thereafter proceeded to declare application invalid based on material pointed out by Commissioner (DR). On writ allowing the petition the Court held that Settlement Commission had clearly violated provisions of section 245D(2C) by providing an opportunity of hearing to Commissioner (DR) to object to admission of application instead of rendering a decision on basis of report of Principal Commissioner as contemplated under said sub-section . Court held that Commissioner (DR) could not be given an opportunity of hearing at time of consideration of application for settlement at the stage of admission. Accordingly the order of Settlement Commission was quashed.