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2013 (3) TMI 374 - HC - Income TaxTime stipulation for exercising the option of Tonnage Tax Scheme - whether mandatory or directory - application made by the assessee opting for Tonnage Tax Scheme belatedly - Held that:- Section 115VP deals with procedure for exercising the option of tonnage tax scheme. Neither section 115VP(2) nor any other provision in this behalf provides for the consequences that will follow in the event of non-submission of application between 01.10.2004 and 31.12.2004. It merely requires an assessee opting for tonnage tax scheme to make an application between 01.10.2004 and 31.12.2004. Keeping the aforesaid aspects in view, the time stipulation in section 115VP(2) is held to be directory and therefore it would be sufficient if it is substantially complied with by the assessee. No prejudice would be caused if the Revenue is directed to consider the application made by the assessee on 04.01.2005 and dispose off the same as per the provision of section 115VP(3). As the statute did not provide for any adverse or penal consequences, if the prescription of sub-section (2) of Section 115VP was not fulfilled. More importantly, the issue is not a recurring one and further that, in any case, the application was made only 4 days after the last date prescribed. Such being the facts, there was substantial compliance with the procedural requirements. These tax appeals are, therefore, dismissed - Tribunal's view accepted - in favour of assessee.
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