Assessee-company was engaged in business of trading in shares, securities, equity and currency derivatives, mutual funds, etc.  Assessee filed its return of income which was accepted and an assessment order was passed.  The  Assessing Officer issued a reopening notice against assessee on ground that assessee had traded in penny stock company and said transactions were sham transactions done only to create an adjustment or a set off in books of account and same was assessee’s own money which was routed through closely held penny stock and assessee had entered into these transactions to evade payment of due taxes. On writ the Court held that   information provided by Investigation Wing was of a general nature and it was more in nature to flag trading transactions in listed stock of penny stock company as against credible and definite information that all transactions in shares of penny stock company were sham transactions. Further, there was no indication that this information was applicable or related in any manner to assessee. There was also no indication of range of sharp increase in price or movement of price of shares of penny stock company during relevant period.  Information did not disclose period during which share prices of penny stock company were stated to have widely fluctuated.Information clearly furnished no reason for Assessing Officer to believe that assessee’s income for relevant assessment year had escaped assessment. On facts, notice and order  were quashed and set aside.  (AY. 2011-12)