The AO received an information from ITO that a search action u/s. 132 was carried out in case of one ‘VI’ Group during which it was found that several companies of group were engaged in providing accommodation entries to various companies in form of share capital, share premium, bogus bills, unsecured loans etc. on commission basis and that one company RTCPL had made bogus investments of certain amount in assessee company, on basis of said information, AO issued reopening notice against assessee and passed reassessment order by making additions u/s. 68 on account of bogus investment.

Held that, reopening proceedings initiated only an solely on basis of information received from ITO, thus, said assessment order was void ab initio, as AO had not pointed out as to how investment in question was unexplained income of assessee, AO had assumed jurisdiction u/s. 147 in a mechanical manner.  (AY. 2011-12)