Case Note & Summary
The case involves a Cross Objection filed by Cipla Limited (the assessee) under Section 253(4) of the Income Tax Act, 1961, in response to an Income Tax Appeal filed by the Revenue (Assistant Commissioner of Income Tax) against an order of the Income Tax Appellate Tribunal for the assessment year 2000-2001. The Revenue's appeal was dismissed on 9th November 2010 for non-removal of office objections, pursuant to an order dated 4th October 2010 that gave four weeks to remove objections failing which the matter would stand dismissed. The Cross Objection had been filed by the assessee within the prescribed time after receiving notice of the appeal. The assessee did not file its own appeal within the limitation period. The short point for consideration was whether the Cross Objection could survive the dismissal of the main appeal. The Court held that a Cross Objection under Section 253(4) is an independent proceeding and does not depend on the main appeal being heard on merits. The dismissal of the appeal for non-removal of office objections does not affect the maintainability of the Cross Objection. The Court distinguished the position under the Code of Civil Procedure (Order XLI Rule 22) and noted that the Income Tax Act provides a separate remedy. The Cross Objection was therefore held to be maintainable and the Court proceeded to hear it on merits.
Headnote
A) Income Tax - Cross Objection - Maintainability - Section 253(4) Income Tax Act, 1961 - Cross Objection filed by assessee in response to Revenue's appeal under Section 260A - Main appeal dismissed for non-removal of office objections - Held that Cross Objection is maintainable as it is an independent proceeding and not dependent on the main appeal being heard on merits; the dismissal of the appeal for non-removal of office objections does not render the Cross Objection infructuous (Paras 1-10).
Issue of Consideration
Whether a Cross Objection filed under Section 253(4) of the Income Tax Act, 1961 is maintainable when the main appeal (filed by the Revenue) has been dismissed for non-removal of office objections.
Final Decision
The Court held that the Cross Objection is maintainable and proceeded to hear it on merits.
Law Points
- Cross objection maintainable even if main appeal dismissed for non-removal of office objections
- Cross objection is independent proceeding
- Section 253(4) Income Tax Act
- 1961
- Order XLI Rule 22 CPC not applicable to Income Tax Act
Case Details
2016 LawText (BOM) (08) 130
Cross Objection No.14 of 2010 in Income Tax Appeal (L) No.1589 of 2010
M. S. Sanklecha, A. K. Menon
Mr. Nitesh Joshi a/w Netaji Gawade i/b. Sanjay Udeshi & Co. for the petitioner, Mr. Ashok Kotangle a/w Ms. Padma Diwakar for the respondents
The Assistant Commissioner of Income Tax & Anr.
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Nature of Litigation
Cross Objection in Income Tax Appeal
Remedy Sought
The assessee (Cipla Limited) sought to sustain the order of the Income Tax Appellate Tribunal on grounds decided against it, by filing a Cross Objection under Section 253(4) of the Income Tax Act, 1961.
Filing Reason
The Revenue filed an appeal against the Tribunal's order; the assessee filed a Cross Objection within time after receiving notice of the appeal.
Previous Decisions
The Income Tax Appellate Tribunal passed an order on 17th February 2010 for assessment years 1999-2000 and 2000-2001. The Revenue's appeal was dismissed on 9th November 2010 for non-removal of office objections.
Issues
Whether a Cross Objection under Section 253(4) of the Income Tax Act, 1961 is maintainable when the main appeal has been dismissed for non-removal of office objections.
Submissions/Arguments
The applicant/assessee submitted that the Cross Objection is maintainable notwithstanding the rejection of the appeal because the applicant had notice of the hearing and filed the Cross Objection within time. The Revenue did not oppose the maintainability.
Ratio Decidendi
A Cross Objection under Section 253(4) of the Income Tax Act, 1961 is an independent proceeding and does not depend on the main appeal being heard on merits. Dismissal of the main appeal for non-removal of office objections does not render the Cross Objection infructuous.
Judgment Excerpts
The short point that arises in the present Cross Objection pertains to its maintainability in view of the fact that the Income Tax Appeal bearing Lodging No.1589 of 2010 was rejected vide order dated 9th November, 2010 for non-removal of office objections.
The learned counsel for the applicants/petitioners in the Cross Objection submits that the Cross Objection maintainable notwithstanding the rejection of the appeal in view of the fact that the applicant had notice of the hearing of appeal and it is pursuant to said notice that the Cross Objection came to be filed and within time prescribed by law.
Procedural History
The Income Tax Appellate Tribunal passed an order on 17th February 2010. The Revenue filed an appeal on 30th June 2010. The assessee was served on 10th August 2010. The appeal appeared on board on 23rd August 2010 and was adjourned by consent multiple times. On 4th October 2010, the Court directed removal of office objections within four weeks failing which the matters would stand dismissed. The Revenue's appeal was dismissed on 9th November 2010 for non-compliance. The Cross Objection was filed in the meantime.
Acts & Sections
- Income Tax Act, 1961: 253(4), 260A
