Court sets aside dismissal of cross objection, directs consideration within 3 months under Income Tax Act

The court allowed the writ petition, setting aside the dismissal of the cross objection as infructuous under Section 253(4) of the Income Tax Act. The appellate authority was deemed unjustified in rejecting the cross objection, directing the first respondent to consider it and pass a final order within three months. The interim order dated 4.4.2016 would continue until the cross objection's resolution.

---

---

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.

---