RAMALAKSHMI SPINNERS (P ) LTD Vs. INCOME-TAX OFFICER

JUDGEMENT

(1.) This is an appeal against the order of the C. I. T. (Appeals) confirming the penalty of Rs. 2,38,832 levied against the appellant under sec. 271(1) (c) of the Income-tax Act, 1961.

(2.) The appellant is a private limited company running a spinning mill for manufacture and sale of cotton yarn. We are concerned in this appeal with the assessment year 1980-81, for which the previous year ended on 31-3-1980. For this year the appellant-company filed its return of income on 8-1-1981 admitting a total income of Rs. 99,095. In its return of income the appellant had claimed depreciation and investment allowance in respect of the following three items of machinery purchase by it during the accounting year :-