During the pendency of assessment proceedings, assessee filed application under S 245C(1) for settlement. The application was admitted to be proceeded with by the settlement commission under section 245D(1) and after considering the submissions of the department, the settlement commissioner proceeded ahead under section 245(2C) with the application for settlement. Thereupon, the settlement commission passed an order under section 245D(4) whereby assessee’s case was relegated to the Assessing Officer. On writ the Court held that the settlement commission had only two options, either to reject the application when true and correct disclosure was not made in the application or allow it to be further proceeded. However, the settlement commission could not have relegated the assessee to be dealt with by the Assessing Officer.