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TMI Blog2013 (3) TMI 374X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 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, di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cheme as to scheme for computation of profits and gains of business of operating qualifying ships under the provisions of that Chapter. 3. Sub-section (1) of Section 115VP enable a qualifying company to opt for the tonnage tax scheme by making an application to the Joint Commissioner in the manner that may be prescribed. Sub-section (2) of Section 115 VP provided for time limit for making such an application. For existing companies, such application had to be any time after 31.09.2004 but before 01.01.2005. Assessee s case fell in the said time period. Though assessee contended that such application was dispatched through ordinary post on 27.12.2004, the Tribunal did not accept such contention and came to the conclusion that as rightly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of procedure, or the like, which is a mere direction or instruction of no obligatory force, as opposed to an imperative or mandatory provision, which must be followed, is generally directory. When a statute requires something to be done, and prescribes the way in which it is to be done, it may either be an absolute enactment or a directory enactment. The difference between the two is that an absolute enactment must be obeyed or fulfilled exactly in the manner prescribed, but it is sufficient if a directory enactment is obeyed or fulfilled substantially. 40. Keeping the aforesaid principles in view, we have carefully perused the provisions of section 115VP (2) to ascertain as to whether specification of time in that provision is dir ..... X X X X Extracts X X X X X X X X Extracts X X X X
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