Condition for Exemption : whether Mandatory Vs Directory

August 3, 2022

Taxpayer is entitled for exemption if conditions are fulfilled
Conditions can be mandatory or directory, courts have condone violation of directory conditions
It is based on the effect of non compliance
SC in Hari Chand Shri Gopal case led that
Conditions which are a matter of substance is mandatory; & one which are mere convenience are directory
E.g. reporting of details of exemption also being a pre-condition to claim exemption is directory
However, in Wirpo’s case, SC considered filings of declaration as a mandatory condition
The matter is again debatable between Wirpo’s case and other jurisprudence