A search under S. 132 was conducted upon assessee on 24-05-2012   and a notice was issued under section 143(3) read with section 153A on 6-4-2017. Assessee had filed an application before Settlement Commission under section 245C where proceedings were pending from 26-2-2015 till 4-8-2016..Assessee filed an application before Settlement Commission under section 245C admitting to receive certain amount in cash from his employer by way of bogus share capital and share premium Same was rejected on technical ground of non-payment of tax. Assessee preferred a second application. Settlement Commission passed a final order of settlement under section 245D(4) again rejecting application of assessee on grounds that assessee had not made true and full disclosures and also manner of earning such income which was essential condition under section 245C(1). Assessee contended that Settlement Commission could not at stage of passing of final order under section 245D(4), reject a settlement application on technical ground of failure of applicant to make a full and true disclosure and manner in which undisclosed income was derived, thus, impugned order passed under section 245D(4) was to be constructed as order passed under section 245D(1). Rejecting the petition the Court held that  the Settlement Commission can reject an application for failure of applicant to make a full and true disclosure even at stage of passing of final order under section 245D(4). As regards the limitation the court held that since assessee had filed an application before Settlement Commission under section 245C where proceedings were pending from 26-2-2015 till 4-8-2016, said period was to be excluded while calculating limitation period for issuing notice under section 143(3) read with section 153A and after excluding above period, notice issued under said section was not time barred. (AY. 2009 10 to 2011-12)