Allowing the  cross objection  the Tribunal held that the Assessing Officer nowhere mentioned that he had new information or fresh material in possession from where he had seen such fact  and the  Assessing Officer had not applied his mind in reaching to reason to believe or formed believe in mechanical order without adducing supporting material that income of assessee had escaped assessment.-Therefore reopening is held to be bad in law. Even in merits the Tribunal held that provision  of deemed dividend is applicable to the facts of the appellant.   (AY. 2008-09)