Penalty justified on Company for claiming deduction under section 54

S.H.R. Trading (P) Ltd. Vs DCIT (Bombay High Court) In facts of the present case, the appellant has admittedly made a claim in its return of income which is prohibited under the Act. The claim for deduction under section 54 of the Act could only be made by individuals or HUF, while the appellant is admittedly a company incorporated under the Companies Act, 1956. Thus this was not a case, where a claim made was debatable or claim being made in the absence of any prohibition to make such a claim under the Act. In the aforesaid cases, one could possibly infer that the claim was made under the bo...