271(1)(c) : Penalty cannot be imposed merely because assessee didn’t objected to addition

Brief Facts of the Case The assessee is an investment company registered as non-banking financial company (NBFC) with Reserve Bank of India. For the relevant financial year under consideration, return of income was filed showing taxable income of Rs.5,29,14,607/- on 28.10.2005 and the AO completed the assessment u/s 143(3) of the Act at an income of Rs.5,93,93,381/- after making several disallowances including disallowance of Rs.52,30,121/- u/s 35D of the Act. The aggrieved assessee filed an appeal before the CIT(A) wherein the assessee did not press disallowance made by the AO u/s 35D of t...