Allowing the appeal of the revenue the Court held that, there is a distinction between questions proposed by the appellant for admission of the appeal (u/s 260A(2)(c)) and the questions framed by the Court (u/s 260A(3)). The High Court has to formulate substantial question of law and only thereafter hear the appeal on merits. If the High Court is of the view that the appeal does not involve any substantial question of law, it should record a categorical finding to that effect & dismiss the appeal in limine. However, it cannot, without admitting the appeal and framing any question of law, issue notice to the respondent, hear both parties on the questions urged by the appellant and dismiss it. This is not in conformity with the mandatory procedure prescribed in S.260A of the Act.(CANo.3968 of 2019, dt. 16.04.2019) ( AY. 2008-09)
PCIT v. A. A. Estate Pvt. Ltd ( 2019) 413 ITR 438 /176 DTR 441/ 308 CTR 193/ 265 Taxman 78 (SC),www.itatonline.org
S. 260A : Appeal – High Court –Without admitting the appeal and framing any question of law and dismissing it is not in conformity with the mandatory procedure –High Court is directed to hear the appeal following the mandatory procedure. [ S.260A(2) ( C ), 260A(3) ]