IT - Appeal - HC Can frame question other than one on which appeal is admitted
IN an order delivered on 31 March 2014, the Supreme Court held, "The High Court's power to frame substantial question(s) of law at the time of hearing of the appeal other than the questions on which appeal has been admitted remains under Section 260A(4). This power is subject, however, to two conditions, (one) the Court must be satisfied that appeal involves such questions, and (two) the Court has to record reasons therefor. "The Supreme Court also observed, "We are afraid that the Revenue is under some misconception. The proviso following the main provision of Section 260A(4) of the Act states that nothing stated in sub-section (4), i.e., 'The appeal shall be heard only on the question so formulated' shall be deemed to take away or abridge the power of the Court to hear, for reasons to be recorded, the appeal on any other substantial question of law not formulated by it, if it is satisfied that the case involves such question."
The High Court's power to frame a question is not fettered and in this the Direct and Indirect Taxes laws are almost identical.
It will be interesting to note that the Supreme Court delivered an identical judgement a year ago word to word ‘copy and paste?' in and we had covered it in 19.03.2013.