Kerala High Court has held that Cross Objection filed before the Tribunal u/s 253(4) is an independent appeal and shall be adjudicated on merits even if the other party’s appeal is dismissed, for whatever reason.
3. Cross objection is filed under Section 253(4) of the Income Tax Act. When a cross objection is filed in an appeal, it has to be treated as an independent appeal and has to be decided irrespective of the fact as to whether the appeal filed by the department has been dismissed on whatever grounds. There is no doubt about the above proposition. The appellate authority was therefore not justified in rejecting the cross objection as infructuous.