Penalty levied with reference to revised return is bad in law when the revised return has been treated as non-est

S. 271(1)(c); in favor of taxpayer : The taxpayer was a trust organized in the US and was a resident of the US. As regards India, it was registered with SEBI as a sub- account of M/s Fidelity Management Resources Co. It filed a return of income declaring short-term capital gains and dividend income.  Thereafter, based on an AAR ruling in case of XZY/ABC Equity  Fund (2005) (250 ITR 194), the taxpayer filed a revised return of income, wherein it claimed that the fund was carrying on business  as an investment trust and the shares and securities were held by the fund as business assets. There...