Assessment was reopened pursuant to reasons recorded alleging that as per the information received from Kolkata investigation wing based on search/survey action; wherein it was alleged that  share price of large number of penny stock companies were artificially manipulated so as to book bogus Long Term Capital Gains. Assessee had disclosed Long Term Capital Gains of Rs. 20.76 lakhs from sale of scrip named Global Securities Limited. Accordingly the assessment was reopened to examine suspicions transaction in penny stock. The Assessee did not raise any legal ground challenging the re-assessment before the AO or before the CIT(A). Hon’ble ITAT held that legal ground can be raised by Assessee at any stage as held by Hon’ble Supreme Court in the case of National Thermal Power Co. Ltd v. CIT (1998), 229 ITR 383(SC).After perusal of the reasons recorded it was observed by the Hon’ble ITAT that the reasons recorded were generic in nature without and the information sated therein did not say that Assessee’s income had escaped assessment. It was nowhere emanating from the reasons recorded the statement recorded during the search mentioned about Assessee’s involvement. In the reasons recorded the AO merely used general information from the investigation report; such information cannot suggest escapement of taxable income of the Assessee. The reason to believe cannot be mere suspicion, gossip or rumour. It was held that reopening was based on borrowed satisfaction without any independent opinion framed by the AO. Accordingly, the re-assessment was held as bad in law.  (AY.  2013-14, 2014-15)