Income Tax Settlement Commission (ITSC) is an important Alternate Disputes Resolution (ADR) mechanism for resolving tax disputes relating to Direct Taxes. At present, four benches of the Settlement Commission are operational at New Delhi, Mumbai, Kolkata and Chennai, respectively. The Commission was constituted w.e.f. 01.04.1976, on the recommendation of the Wanchoo Committee (1971). The Committee conceived the Commission as a mechanism for providing room for settlement and compromise for one-time tax evaders or unintending defaulters. The Commission has settled over 15000 tax disputed in its life-time, which include 4778 tax disputes in the last 11 years. One �Case� settled by the Commission, reduces litigation in respect of an applicant for several years relating to proceedings of various nature, such as assessment, penalty, prosecution, tax collection, etc. Each such proceeding before an Assessing Officer of the Income Tax Department is appealable before Commissioner (Appeals) and later before the Income Tax Appellate Tribunal and where it involves question of law, even up to High Courts and the Supreme Court.