There
can be one possibility when the cross objection is filed by the other side in
support of the order passed by the CIT(A) and the other possibility can be of
filing CO against the issues decided against it in the impugned order. There
can be still one more possibility when the other side, apart from supporting
the impugned order appealed against, may also assail certain other issues
decided against it. This divulges that the CO can be filed by the other side,
on receipt of notice of appeal having been filed by the appealing party, on any
issue de hors the issued raised by the appealing party.
On
filing, a CO assumes the character of an appeal, which is apparent from section
253(4), which provides that: 'such memorandum shall be disposed of by the
Appellate Tribunal as if it were an appeal presented within the time specified
in sub-section (3) or sub-section (3A)'. Rule 22 of the ITAT Rules, 1963 also
provides that: 'A memorandum of cross-objections filed under sub-section (4) of
section 253 shall be registered and numbered as an appeal and all the rules, so
far as may be, shall apply to such appeal. This shows that a cross objection is
treated in no way different from a separate appeal by the tribunal.
The
scope of a Cross objection is not restricted only to the points decided against
the appealing party, but, also extends to the points decided against the other
side. The mandate of the provision is quite vast and is unlike the prescription
of rule 27 of the ITAT Rules, which is limited in its realm empowering the
respondent to support the impugned order by providing that: 'The respondent,
though he may not have appealed, may support the order appealed against on any
of the grounds decided against him.
Contention
that the Cross objections filed by the assessees should be invariably dismissed in limine for the reason of the dismissal of
the appeals of the Department because of low tax effect, does not stand to any
logic in all circumstances. In a situation where the cross objection is
in support of the impugned order, then, of course, such a cross objection has
no independent existence and is liable to be dismissed as infructuous pursuant
to the dismissal of the appeal of the Revenue. However, in a case where
the cross objection filed u/s 253(4) is on an issue independent of the appeal
filed by the Revenue, then, such a cross objection cannot be dismissed simply
on the ground of dismissal of the appeal by the Revenue involving low tax
effect. Acceptance of this contention of the ld. DR would amount to snatching a
valuable right given by the statute to the assessee to file and pursue an
appeal before the Tribunal irrespective of any tax effect.[Para 7,8,9 of
the Judgement]
Ajay Kalia[2016] 66 taxmann.com 99
(Delhi - Trib.) JANUARY 7, 2016
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