JUDGMENT - MANOHAR SUJATA V., J.: - The appellants are the original petitioners. The first petitioner company is a company registered under the Companies Act, 1956 and carries on business, inter alia as general engineers and contractors. Petitioners Nos. 2 and 3 are directors of the first petitioner-company.

2. During the years ending on 31st October, 1980, 31st October, 1981 and 31st October, 1982 the company had deposited with various independent and reputed Public Limited Companies certain amounts as fixed deposits for six months, except in the case of one deposit which was for a period of 1 year. All these amounts were repaid on maturity and the interest on these amounts was also received by the company.

3. The amounts so deposited by the company have been shown in the balance-sheets of the company for the relevant periods on the Assets side under the general heading “loans and advances”. Under this heading on the Assets side of the balance sheet the amounts of the deposits are shown under the sub heading “Deposits with joint-Stock Companies.”

4. For the period ending 31st October 1980 the company had so deposited a sum of Rs. 50,000/- with various independent companies. For the

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