Dismissing the appeal of the revenue the Tribunal held that; the AO could not have issued a notice mechanically . There were no enquires which the assesse had been confronted with despite specific requests and that there was no material which could enable the  AO to form an opinion that income of the assesse had escaped assessment so as to allege that share capital represented accommodation entries. It was further observed that, the bank statement of the assesse duly established that the transactions were through banking channels and that both the shareholders had creditworthiness to subscribe to the share capital. There was no tangible material and therefore, it was held that the action of the  AO to reopen the proceedings was invalid and that the  CIT(A) was justified in treating the assessment order passed as void-ab-initio. (AY. 2009-10)