High Court clarifies process for cross-appeals after ITAT order

The High Court addressed the impugned order by the Special Bench of ITAT, directing restoration of the matter to the Division Bench for adjudication. Cross-appeals by Revenue and Assessee were to be decided by the Division Bench. The Court emphasized adherence to statutory provisions for challenging decisions. No notice was issued in the writ petition, and no comments on merits were made. The petition was disposed of without costs, and pending applications were resolved. Necessary documents were to be issued to conclude proceedings.

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Issues:
Impugned order by Special Bench of ITAT, direction to Hon'ble President of ITAT, restoration of matter to Division Bench, cross-appeals by Revenue and Assessee, decision by Division Bench, challenge as per statute, issuance of notice in writ petition, clarification on merits, disposal of petition, no order as to costs, pending application disposal.

Analysis:
The High Court addressed the matter concerning the impugned order dated 23.8.2017 by the Special Bench of the Income Tax Appellate Tribunal (ITAT). The ITAT answered the reference made to them and directed the matter to be placed before the Hon'ble President of ITAT for an appropriate decision. Subsequently, the Hon'ble President of ITAT, through an order dated 24.8.2017, directed the restoration of the matter to the Division Bench for adjudication in accordance with the law. It was noted that the Special Bench, having decided the question, was disbanded.

The High Court emphasized that the cross-appeals filed by both the Revenue and the Assessee must now be listed before the Division Bench for a decision. The petitioner was instructed to await the Division Bench's decision and challenge it if necessary, following the statutory provisions. The Court, under the prevailing circumstances, decided not to issue a notice in the present writ petition. Importantly, the Court clarified that no comments on the merits were made, and all issues and contentions were left open for further consideration.

Consequently, the petition was disposed of without any order as to costs, and the pending application was also disposed of. The Court directed the issuance of necessary documents under the signature of the Court Master to conclude the proceedings.

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