PCIT (Central)-2 Vs Nagar Dairy Pvt. Ltd. (Delhi High Court)
Delhi High Court held that Section 260A of the Income Tax Act refrains from incorporating a specific provision permitting the filing of a cross-objection. Thus, cross objection would not be maintainable.
Facts- The appeals themselves arise out of a search and seizure operation undertaken on 17 September 2010 in terms of Section 132(1) of the Income Tax Act, 19612, in the case of the Nagar Dairy Group. In the course of that search, the appellants are stated to have also seized documents and material from the premises of M/s AIMS Promoters Pvt. Ltd. relating to the respondent-assessee. It is this which led to the initiation of proceedings referable to Section 153C of the Act.
The appeals preferred by the assessee, however, came to be partly allowed by the tribunal and which led to the institution of the present appeals. The appellants argue that the cross-objections would not be maintainable in light of Section 260A of the Act neither envisaging nor creating such a remedy.
Conclusion- Held that Section 260A refrains from incorporating a specific provision permitting the filing of a cross-objection. This is in stark contrast to what is provisioned for at the second appeal stage before the Tribunal. Thus, while at the stage of an appeal reaching the board of the Tribunal, both the Revenue as well as the assessee are statutorily enabled to prefer a cross-objection on receipt of notice of an appeal, the Legislature has not made any corresponding or parallel provision in Section 260A. It is also pertinent to note that while that cross-objection could be in relation to “any part of such order” and which forms the subject matter of the appeal filed before the Tribunal, the right of the respondent stands confined to urging for our consideration that the appeal does not give rise to any substantial question of law.
