Assesse filed its return declaring certain taxable income. Assessing Officer completed the assessment under section 143(3). After expiry of four years from the end of the relevant year, the Assessing Officer received Information from the Investigation wing that ‘N’ Ltd. was a penny stock listed in BSE which was used to facilitate the introduction of unaccounted income of members in the form of share capital and, assess was one of those beneficiaries. On the basis of said information, Assessing Officer initiated reassessment proceedings in case of the assessee.

It was noted that at relevant time period, there was no company by name of ‘N’ Ltd. was in existence and, thus, the Assessing Officer had initiated reassessment proceedings merely on basis of information received from Investigation Wing without conducting any independent enquiries – Even otherwise, there was no failure on part of assesse to disclose all material facts at time of assessment and, thus, reassessment proceedings were hit by the provision to section 147. in view of aforesaid, impugned reassessment proceedings deserved to be quashed. 104 taxmann.com 216 (Bombay).