Como posso ocultar uma coluna usando uma instrução Select?

Você só precisa adicionar uma casedeclaração à sua selectlista:

declare @bid varchar(4) = '1007'    

select sr.release_date,
    sr.customer_id,
    sr.customer_name,
    sr.item_id,
    sr.item_desc,
    sr.order_no,
    sr.qty_on_hand,
    sr.release_qty,
    sr.qty_after_released,
    sr.extended_sell,
    sr.enough,
    case when sr.route_code in ('pm 01','pm 03','pm 05') then sr.route_description else '' end as route_description
from sri_schedule_releases_view as sr
where 
    ((case 
        when sr.route_code in ('pm 01','pm 03','pm 05') then (select users.contact_id from users where users.delete_flag = 'n' and users.name = 'John')
    end = @bid) or 
    (case 
        when sr.route_code in ('pm 01','pm 03','pm 05') then (select users.contact_id from users where users.delete_flag = 'n' and users.name = 'Jane')
    end = @bid) or
    (case 
        when sr.route_code in ('pm 01','pm 03','pm 05') then (select users.contact_id from users where users.delete_flag = 'n' and users.name = 'Doe')
    end = @bid) or
    (sr.contact_id = @bid))
order by sr.item_id asc

Eu encontrei uma solução e funciona como eu esperava

declare @bid varchar(4) = '1007'    

declare @pm1 varchar(5) = (select users.contact_id from users where users.delete_flag = 'n' and users.name = 'John')
declare @pm3 varchar(5) = (select users.contact_id from users where users.delete_flag = 'n' and users.name = 'Jane')
declare @pm5 varchar(5) = (select users.contact_id from users where users.delete_flag = 'n' and users.name = 'Doe')

if @bid in (@pm1,@pm3,@pm5) 
begin
select sr.release_date,
    sr.customer_id,
    sr.customer_name,
    sr.item_id,
    sr.item_desc,
    sr.order_no,
    sr.qty_on_hand,
    sr.release_qty,
    sr.qty_after_released as available_qty,
    sr.extended_sell as ext_sell,
    sr.enough,
    sr.route_description

from sri_schedule_releases_view as sr

where 
   ((case 
      when sr.route_code in ('pm 01','pm 03','pm 05') then @pm1
   end = @bid) or 
   (case 
      when sr.route_code in ('pm 01','pm 03','pm 05') then @pm3
   end =@bid) or
   (case 
      when sr.route_code in ('pm 01','pm 03','pm 05') then @pm5
   end = @bid) or
   (sr.contact_id = @bid))
end
else
begin
select sr.release_date,
    sr.customer_id,
    sr.customer_name,
    sr.item_id,
    sr.item_desc,
    sr.order_no,
    sr.qty_on_hand,
    sr.release_qty,
    sr.qty_after_released as available_qty,
    sr.extended_sell as ext_sell,
    sr.enough

from sri_schedule_releases_view as sr

where 
   ((case 
      when sr.route_code in ('pm 01','pm 03','pm 05') then @pm1
   end = @bid) or 
   (case 
      when sr.route_code in ('pm 01','pm 03','pm 05') then @pm3
   end =@bid) or
   (case 
      when sr.route_code in ('pm 01','pm 03','pm 05') then @pm5
   end = @bid) or
   (sr.contact_id = @bid))
end

Se você quiser mostrar apenas a coluna se os dados estiverem presentes, talvez crie uma função com duas possibilidades dentro de instruções IF:

SE os dados estiverem presentes (Execute a consulta normal) ELSE
(copie a mesma consulta, mas sem a coluna vazia)

Muito código - basta criar uma tabela temporária com todo o conjunto de resultados.

SELECT * INTO #tmpTbl FROM MyDatabase.dbo.tbl 

ALTER TABLE 

REMOVE columname

SELECT * FROM #tmpTbl 

DROP TABLE #tmpTbl