Ita/48/2007 Of The Commissioner Of Income Tax v. M/S.kerala Kaumudi (P) Ltd

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN &THE HONOURABLE MR. JUSTICE ASHOK MENON THURSDAY, THE 14TH DAY OF DECEMBER 2017/23RD AGRAHAYANA, 1939 ITA.No. 48 of 2007 ------------------ AGAINST THE ORDER/JUDGMENT IN ITA 9/COCH/2003 ofI.T.A.TRIBUNAL,COCHIN BENCH DATED 01-04-2005 APPELLANT(S)/APPELLANT: ----------------------- THE COMMISSIONER OF INCOME TAX, THIRUVANANTHAPURAM. BY ADV. SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT(S)/RESPONDENT: ------------------------ M/S.KERALA KAUMUDI (P) LTD., PETTAH, THIRUVANANTHAPURAM. R1 BY ADV. SRI.M.PATHROSE MATTHAI (SR.) R1 BY ADV. SRI.SAJI VARGHESE THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON14-12-2017, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ITA.No. 48 of 2007------------------ APPENDIX APPELLANT(S) ANNEXURE:--------------------- ANNEXURE A: TRUE COPY OF THE ORDER OF THE ASSESSING OFFICERDATED 31-03-1997. ANNEXURE B:TRUE COPY OF THE ORDER OF THE COMMISSIONER OFINCOME TAX (APPEALS) DATED 16-09-2002.ANNEXURE C:TRUE COPY OF THE ORDER OF THE APPELLATE TRIBUNALDATED 01-04-2005. RESPONDENT(S) ANNEXURE---------------------- NIL dkr K.VINOD CHANDRAN & ASHOK MENON, JJ. ------------------------------------------- I.T.Appeal No. 48 of 2007 ------------------------------------------- Dated this the 14[th] day of December, 2017 J U D G M E N T Vinod Chandran, J. The petitioner is the revenue and the respondent-assessee is anews paper company. The question raised in the above appeal is as towhether the assessee can carry on hybrid system of accounting. Theassessee was carrying on mercantile system of accounting, except thetransactions with respect to advertisement and also news paper sales toagencies. The assessee used to account it on cash basis for all the years.The question for an earlier assessment year was raised before this courtand it was found that the assessee was following the hybrid system ofaccounting as permissible prior to 1997 and on the basis of theconsistent practices followed by the assessee, the same could bepermitted. In view of the binding precedent, we respectfully follow theaforesaid decision, and reject the Income Tax Appeal, answering thequestion in favour of assessee and against the revenue. No costs. Sd/- K.VINOD CHANDRAN Judge Sd/- ASHOK MENON Judge