regard to the provisions of section 145 of the IT
Act, the Apex Court, this Court and the Gujarat High
Court have approved the liberty available to the
assessee to follow either of the two systems of
accounting or the hybrid system. As reiterated by
the Apex Court in Taparia Tools Ltd. v. Commissioner
of Income Tax [(2015) 276 CTR 1], the entries in the
books of accounts are not determinative or conclusive
and any matter relevant are to be examined on the
touchstone of provisions contained in the Act. Apart
from arguing that for the sales of newspaper and
advertisement charges, it was not permissible to
adopt accounting on cash basis, it was not even
contended by the Revenue that the taxable income
could not be deduced from the accounts of the
assessee.
In the light of the principles of law deducible from
the statutory provisions and the judgments that we
have referred to, we are of the view that no
illegality can be attributed to the decision of the
Tribunal. In such circumstances, answering the
question of law in favour of the assessee and against
the Revenue, these appeals are dismissed.
IN THE HIGH COURT OF KERALAAT ERNAKULAM
PRESENT:
THE HONOURABLE MR.JUSTICE ANTONY DOMINIC
&
THE HONOURABLE MR. JUSTICE SHAJI P.CHALY
WEDNESDAY, THE 29TH DAYOF JULY 2015
ITA.No. 119 of 1999 ( )
THE COMMISSIONER OF INCOME TAX,
THIRUVANANTHAPURAM.
Vs
M/S. KERALA KAUMUDI (P) LTD.,
THIRUVANANTHAPURAM.
