Summary
The Supreme Court remanded the Revenue’s appeal concerning Yes Bank’s Section 35-D deduction claim. After hearing both sides, the High Court had neither framed substantial questions of law nor decided the central applicability issue. It should frame and answer the proper questions, hearing the related pending appeal together if applicable. The Supreme Court expressed no view on the bank’s eligibility or the underlying tax merits.
Issues
- Whether the High Court could dispose of the tax appeal without framing and deciding the substantive legal questions.
Held
- The dismissal was not an admission-stage finding that no substantial question arose. Having heard the appeal, the High Court left the principal Section 35-D applicability question undecided and failed to frame the required questions of law. (¶ 12–14)
- The proper course was to frame and decide the substantial questions and, if the related appeal on the same issue remained pending, hear both together. All merits remained open. (¶ 15–18)
Result
Revenue appeal allowed; High Court order set aside and appeal remanded for fresh merits disposal after framing proper substantial questions of law, with the related appeal if pending. No view on deduction eligibility.