So glorified be He and exalted (above all that they associate with Him), and in Whose Hand is the dominion of all things, and to Him you shall be returned.
means, glorified and exalted and sanctified above any evil be the Ever Living, the Self-Sufficient, in Whose hand is the control of the heavens and the earth, to Whom all matters return. His is the power to create and command, and to Him all mankind will return on the Day of Resurrection. Then He will reward or punish each one according to his deeds, and He is the Just, the Generous Bestower, the Graciously Disposed.
The meaning of this Ayah,
فَسُبْحَانَ الَّذِي بِيَدِهِ مَلَكُوتُ كُلِّ شَيْءٍ
(So glorified be He and exalted (above all that they associate with Him), and in Whose Hand is the sovereignty (Malakut) of all things) is like the Ayat;
قُلْ مَن بِيَدِهِ مَلَكُوتُ كُلِّ شَىْءٍ
Say;"In Whose Hand is the sovereignty (Malakut) of everything." (23;88)
تَبَارَكَ الَّذِى بِيَدِهِ الْمُلْكُ
Blessed be He in Whose Hand is the dominion (Al-Mulk). (67;1)
Al-Mulk and Al-Malakut mean the same thing, although some people claim that Al-Mulk has to do with the physical realm and Al-Malakut has to do with the spiritual realm. But the former view is the one which is correct, and this is the opinion of the majority of the scholars of Tafsir and others.
Imam Ahmad recorded that Hudhayfah bin Al-Yaman, may Allah be pleased with him, said,
"I stood in prayer with the Messenger of Allah one night and he recited the seven long Surahs in seven Rak`ahs. When he raised his head from bowing, he said,
سَمِعَ اللهُ لِمَنْ حَمِدَه
Allah hears the one who praises Him.
Then he said;
الْحَمْدُ للهِِذي الْمَلَكُوتِ وَالْجَبَرُوتِ وَالْكِبْرِيَاءِ وَالْعَظَمَة
Praise be to Allah, the Owner of Malakut, might, pride and greatness.
His bowing was as long as his standing position, and his prostration was as long as his bowing. Then he finished and my legs were nearly broken."
Abu Dawud recorded that `Awf bin Malik Al-Ashja`i, may Allah be pleased with him, said,
"I stood in prayer with the Messenger of Allah one night and he recited Al-Baqarah.
- He did not reach any Ayah that mentioned mercy but he paused and asked for it, and
- he did not reach any Ayah that mentioned punishment but he paused and sought refuge from it.
Then he bowed for as long as he had stood, and while bowing he said,
سُبْحَانَ ذِي الْجَبَرُوتِ وَالْمَلَكُوتِ وَالْكِبْرِيَاءِ وَالْعَظَمَة
Glory be to Allah, the Owner of might, Malakut, pride and greatness.
Then he prostrated for as long as he had bowed, and said something similar while prostrating.
Then he stood and recited Al `Imran, then he recited one Surah after another."
This was recorded by At-Tirmidhi in Ash-Shama'il and An-Nasa'i.
This is the end of the Tafsir of Surah Ya Sin. All praise and thanks are due to Allah