| The Tax Publishers2023 TaxPub(DT) 155 (Ahd-Trib) INCOME TAX ACT, 1961
Section 253(4)
In a cross-objection, there is no bar to raise legal issues for the first time before ITAT. A cross-objection is like an appeal. It has all the trappings of an appeal. It is filed in the form of memorandum and it is required to be disposed of in same manner as an appeal. Even where appeal is withdrawn or dismissed for default, cross-objection may nevertheless be heard and determined. Cross-objection is nothing but an appeal, a cross-appeal at that. This apart, raising of additional ground would only enable the authority concern to correctly assess the tax liability of the assessee. Assessee was incapacitated to put forward new claim towards depreciation on goodwill for which relevant facts were duly available on record. Therefore, AO was directed to delete addition made by him and thus, ground of appeal of assessee was allowed.
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Appeal (Tribunal) - Whether additional ground can be raised in a cross-objection filed by assessee under section 253(4) - -
Assessee claimed depreciation on goodwill at Rs. 1,76,43,861 only whereas actual and eligible amount of depreciation worked out at Rs. 74,43,504 only. As per AO assessee claimed excessive depreciation on the goodwill by Rs. 1,02,00,357 only which was disallowed and added to the total income of the assessee. It was the case of the assessee by way of additional ground that eligibility of depreciation on goodwill was not in dispute. AO simply disputed the quantification of eligible depreciation spanning over various financial years on the ground that depreciation was eligible from the appointed date as sanctioned by the Gujarat High Court. Thus, on account of such re-working, assessee presented a new claim towards depreciation on goodwill in the concerned assessment year on the ground that all the relevant facts were available on record which were duly admitted by the revenue. Therefore, assessee could not be deprived of the eligible depreciation as computed by AO himself. As per AO, no additional ground could be raised in a cross-objection filed by assessee under section 253(4). As per assessee there is no perceptible distinction between the position of law qua cross objection in the matter of filing additional ground. A cross objection had all the trappings of a regular appeal more so in the light of language employed under section 253(4). Held: In a cross-objection, there is no bar to raise legal issues for the first time before ITAT. A cross-objection is like an appeal. It has all the trappings of an appeal. It is filed in the form of memorandum and it is required to be disposed in same manner as an appeal. Even where appeal is withdrawn or dismissed for default, cross-objection may nevertheless be heard and determined. Cross-objection is nothing but an appeal, a cross-appeal at that. This apart, raising of additional ground would only enable the authority concern to correctly assess the tax liability of the assessee. Assessee was incapacitated to put forward new claim towards depreciation on goodwill for which relevant facts were duly available on record. Therefore, AO was directed to delete addition made by him and thus, ground of appeal of assessee was allowed.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2016-17
IN THE ITAT, D BENCH, AHMEDABAD
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