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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 ..... age 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 relation to Chapter XII-G pertaining to special prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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, when it relates to form and manner, and where an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld 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). We order accordingly. In this view of the matter, the order passed by the CIT(A) and the AO in this behalf is set aside and the matter is restored to the file of AO for a fresh decision in conformity with law. He will place the matter before the JCIT for passing requisite orders in conformity with law. Ground No.2 taken by the assessee is treated as allowed for the statistical purposes." 4. Having heard learned counsel for the revenue, we are broadly in agreement with view expressed by the Tribunal. We notice that the statute did not provide for any adverse or penal conseq ..... X X X X Extracts X X X X X X X X Extracts X X X X
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