In tax litigation, victories are not decided only on merits. Quite often, they turn on procedure. One such procedural aspect that frequently confuses taxpayers — and sometimes even professionals — is the difference between a cross appeal and a cross objection before the Income Tax Appellate Tribunal (ITAT).

At first glance, both appear to be similar remedies. After all, both allow the respondent to challenge some part of the CIT(A)’s order. But legally and strategically, they are very different tools. Choosing the wrong one, or ignoring the correct one, can affect the outcome of the case.

Let us break this down in simple terms.

A cross appeal is nothing but a regular appeal filed by the assessee or the department against the order of the CIT(A). It is filed under Section 253(1) or 253(2), just like any other ITAT appeal. It does not depend on what the opposite party does. If a taxpayer is dissatisfied with any part of the CIT(A)’s order, he can file an appeal within sixty days from the date of receipt of the order. This is an independent, proactive step. It gives full control over the issues to be raised before the Tribunal.

A cross objection, on the other hand, comes into existence only after the opposite party files an appeal. It is governed by Section 253(4). Once the ITAT issues notice of appeal to the respondent, the respondent gets thirty days to file a cross objection. In effect, it is a defensive counter-appeal. It allows the respondent to support the CIT(A)’s order or challenge any adverse portion of it, even if he did not file an appeal earlier.

This difference in timing is crucial. A cross appeal is filed on one’s own initiative, while a cross objection is triggered by the other side’s appeal.

Another practical distinction lies in cost and procedure. A cross appeal requires payment of appeal fees and must be filed in Form No. 36. A cross objection, however, does not require any filing fee. This makes it an attractive option when the tax effect is small but the issue is important.

The time limits also differ significantly. A cross appeal must be filed within sixty days from the receipt of the CIT(A)’s order. A cross objection can be filed within thirty days from the date of receiving the notice of appeal from the Tribunal. This means that even if the time for filing an appeal has already expired, a party may still get a fresh opportunity to challenge the order through a cross objection once the opposite party files an appeal. This feature often saves cases where the taxpayer initially chose not to appeal but later realises the importance of certain issues.

Many people assume that a cross objection is only meant to defend the CIT(A)’s order. That is not correct. Once filed, a cross objection is treated almost like an appeal. The Tribunal can grant relief to the respondent on issues raised in the cross objection, just as it would in a regular appeal. It is not merely a reply; it is a substantive remedy.

There is another interesting strategic aspect. Even if the main appeal is later withdrawn or dismissed, the cross objection does not automatically disappear. It can survive independently and be decided by the Tribunal on its own merits. This gives the respondent a powerful tool to protect his position.

However, it is important to understand when a cross objection is actually needed. If the CIT(A)’s order is completely in your favour and you only want to defend it, you may not need to file either a cross appeal or a cross objection. You can simply appear before the Tribunal and argue that the order is correct. But if any part of the order goes against you — even partially — then filing a cross objection becomes a safer course.

 Without it, you may not be able to seek additional relief beyond what the CIT(A) has granted.

In practice, experienced litigators follow a simple rule. If they are fully satisfied with the CIT(A)’s order, they defend it without filing anything. If there is any grievance, they prefer to file a cross objection once the department appeals. And if the issue is important or the tax impact is high, they do not wait at all — they file a cross appeal within time.

The choice between cross appeal and cross objection is therefore not merely procedural; it is strategic. One is proactive, the other reactive. One is independent, the other conditional. Both are valuable, but each serves a different purpose.

Tax litigation often rewards those who watch not only the law but also the timeline. Knowing when to file an appeal and when to file a cross objection can sometimes make the difference between winning the case and losing the opportunity to argue it at all.