Cross-objections cannot be treated as infructuous without adjudication; Tribunal order set aside and matter remanded for fresh decision.

The HC set aside the Tribunal's treatment of the assessee's cross-objections as infructuous and remanded them for fresh adjudication, directing the Tribunal to pass an appropriate order expeditiously while keeping all contentions open. The Court did not decide the merits of the allowability of allocable staff expenses and general administration costs, noting that issue was stated to be covered against the assessee by a later Supreme Court decision. It also declined to express any view on the rival arguments concerning infructuousness, but held that the cross-objections required a formal adjudication.

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Issues: Whether the Tribunal was justified in dismissing the assessee's cross-objections as infructuous, and whether the matter required remand to the Tribunal for fresh adjudication.

Analysis: The challenge to the first question concerning allowability of allocable staff expenses and general administration costs was not examined on merits, as it was stated to be covered against the assessee by a later Supreme Court decision. On the second question, the Court declined to express any opinion on the rival contentions regarding infructuousness of the cross-objections, but held that the Tribunal must pass an appropriate order on them.

Conclusion: The Tribunal's order treating the cross-objections as infructuous was set aside, and the cross-objections were remanded to the Tribunal for adjudication expeditiously, with all contentions kept open.

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