When “shall” can be read as directory in Tax Statutes

It is well-settled that charging provisions of tax statutes are to be interpreted in a strict and literal manner, whereas machinery sections are not subject to a rigorous construction. In this context, it is interesting to note that the word ‘shall’ is not conclusive as to the mandatory nature of a provision.

In their article for Taxsutra, Darshan Bora (Partner) and Samyuktha Srinivasan (Associate) illustrate through various case laws, different scenarios wherein the word ‘shall’ appearing in a tax statute has been interpreted by Courts to read as directory and not mandatory.

Read the detailed article here – Click here