Substance Over Form Must Apply To Taxpayers Too

Procedural forms serve a purpose. They mustn't override substantive rights

- MAYANK MOHANKA

The 'substance over form' principle in tax law means that what really happens in a transaction matters more than how it looks on paper. It empowers tax authorities to look past legal documents to understand the true purpose and effect of a deal.

Tax authorities often invoke this doctrine when it helps them deny benefits, disregard sham transactions or expose tax avoidance. However, when it comes to the taxpayer—who may miss a form, a checkbox, or falter on minor procedural compliance—the same tax authorities often rigidly insist on 'form over substance'.