Initially, we reject respondents' contention that Supreme Court should have transferred the proceeding to this Court. The petition sought review of a determination of a town zoning board of appeals; Supreme Court was therefore obligated by statute to dispose of the matter on its merits and to determine all of the issues raised by the pleadings (see, Town Law § 267 [7]; Matter of Kidd-Kott Constr. Co. v Lillis,
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