Appeal to High Court : Power and duty : S. 260A of Income-tax Act, 1961 : Where a substantial question of law arises, a party should not be denied to raise that question of law at the time of final hearing on the ground that such question was not framed a

[Ankita Deposites and
Advances (P) Ltd. v. CIT, 193 Taxman 36 (HP)]

In this case, the question
before the Himachal Pradesh High Court was as to whether a party can be
permitted to raise a substantial question of law at the time of final hearing,
which has not been framed earlier.

The High Court held as under
:

“(i) A bare reading of S.
260A clearly shows that an appeal to the High Court u/s.260A can only be filed
if a substantial question of law is involved in the appeal. It is the duty of
the High Court to frame the substantial questions of law at the time of the
admission of the appeal. In terms of Ss.(4) of S. 260A, normally, the appeal
should only be heard on the question of law so formulated and the respondent
would have a right to urge that the question so framed is not a substantial
question of law or the question so framed does not arise in the appeal.

(ii) However, the proviso
to this sub-section clearly lays down that nothing in sub-section shall in any
manner impinge on the right of the Court to hear, for the reasons to be
recorded, the appeal on any other substantial question of law not framed by
it, if it is satisfied that the case involves such a question.

(iii) It is the duty of
the Court to do justice and in case a substantial question of law arises, it
would be extremely unfair not to permit the party to raise the substantial
question of law only on the ground that such substantial question of law was
not framed at the stage of admission of the appeal.”