Application for settlement was admitted on 30-8-1996 but  admitted tax and interest required to be paid within 35 days was not paid . During pendency of proceedings by Settlement Commission, there was an amendment by Finance Act, 2007 w.e.f. 1-6-2007. New provisions being S.. 245D(2D) and 245HA, were inserted which provided that in cases where admitted tax and interest were not paid by 31-7-2007, Settlement Application would stand abated on 31-7-2007. Assessee challenged constitutional validity of said amendment. High Court adjourned writ petition sine die awaiting judgment of Supreme Court in case of Prabhu Dayal v. Union of India [CWP No. 1130 of 2008] which was later withdrawn  . High Court passed judgment based on ratio laid down by Bombay High Court in case of Star Television News Ltd. v. UOI ( 2007) 317 ITR 66 (Bom) HC) . Settlement Commission passed an order on 25-4-2016 under section 245HA(1) read with section 245D(2D) and the Assessing Officer was also marked a copy of the order dated 25-4-2016 under section 245HA(1), read with section 245D(2) stating that the proceedings had abated on the grounds that the admitted tax and interest on the income disclosed had not been paid as per newly inserted section 245D(2D). Intimation letter dated 25-4-2016 was communicated to the Principal Commissioner on 2-5-2016. Following this, the assessee received the notice under section 142(1) from the Assessing Officer. In response to the said notice, the assessee submitted a reply contending that the proceedings have become time-barred. AO completed proceedings on 22-6-2016. Assessee challenged the  said order stating that the order is time barred . The Commissioner (Appeals) held that the impugned assessment order was time barred as per the newly inserted provisions of sections 245D(2D), 245HA(1)(ii) and Explanation (b) thereto, 245HA(4) read with 2nd proviso to section 153(4). On appeal by the revenue the Tribunal held that, order passed by AO  being passed within 60 days from order of Settlement Commission abating case was well within time allowed by Act. Tribunal held that ,having received the information regarding the abatement of the cases on 25-4-2016 has completed the proceedings on 22-6-2016 which is well within the time allowed by the Act as the orders have been passed within 60 days from the order of the ITSC under section 245HA(1), read with section 245D(2D). Accordingly the order of the Commissioner (Appeals) could not be sustained neither on the factual grounds nor on the legal grounds. (AY. 1994-95 to 2000-01 )