2016 (6) TMI 1165 - HC - Income Tax

Cross objection filed under Section 253(4) - Held that - When a cross objection is filed in an appeal, it has to be treated as an independent appeal and has to be decided irrespective of the fact as to whether the appeal filed by the department has been dismissed on whatever grounds. There is no doubt about the above proposition. The appellate authority was therefore not justified in rejecting the cross objection as infructuous. Hence, this writ petition is allowed. Ext.P8 to the extent of dismissing the cross objection is set aside. There will be a direction to the first respondent to consider the cross objection filed by the petitioner and final order shall be passed after hearing the petitioner within a period of three months from the date of receipt of a copy of this judgment.

Summary

Issues:
Challenge to dismissal of cross objection in Ext.P8.

Analysis:
The petitioner challenged Ext.P8, specifically the dismissal of the cross objection as infructuous. The cross objection was filed under Section 253(4) of the Income Tax Act. It was argued that when a cross objection is filed in an appeal, it should be treated as an independent appeal and decided regardless of the outcome of the department's appeal. The court acknowledged this principle and held that the appellate authority was unjustified in rejecting the cross objection as infructuous. Consequently, the writ petition was allowed, and Ext.P8's dismissal of the cross objection was set aside. The first respondent was directed to consider the cross objection filed by the petitioner, with a mandate to pass a final order after hearing the petitioner within three months from the date of receipt of the judgment. Additionally, it was clarified that the interim order dated 4.4.2016 would remain in effect until the cross objection was disposed of.