2013 (3) TMI 374

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....pulation for exercising the option of Tonnage Tax Scheme is not mandatory but directory and directing the department to consider the application made by the assessee opting for Tonnage Tax Scheme belatedly?    B. Whether in the circumstances and the facts of the case and in law, the Appellate Tribunal is justified in setting aside the order passed by the CIT(A) as well as the A.O. and restoring the matter back to the file of A.O. for fresh consideration?" 2. In brief, the issue is whether the time limits specified in Section 115VP(2) of the Income Tax Act, 1961 is mandatory? Briefly stated facts are that Section 115VP was introduced for regulating method and time of opting for tonnage tax scheme. Such provision was in relati....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....een passed ignoring delay of four days in making the said application. The case of the Department, on the other hand, is that the time provision of section 115VP(2) is mandatory and therefore its nonadherence would disentitle the assessee from opting for the tonnage tax scheme. Under a general classification, time provisions are either mandatory or directory, and, if mandatory, they prescribe, in addition to requiring the doing of the things specified within the stipulated period, the result that will follow if they are not done within that period, whereas, if directory, their terms are limited to what is required to be done. A statute is mandatory when the provision of the statute is the essence of the thing required to be done; otherwise,....