Dismissing the petition the Court held that  on the facts, there was reason to believe that income chargeable to tax had escaped assessment because reopening of the assessment under section 147 had been made only after due inquiries and recording of statements of concerned persons, and on having found prima facie material. The Assessing Officer had reason to believe that the investor companies were not in existence and the basis for such belief was several inquiries and the investigation by the Investigation Wing, Kolkata and report thereof. The identity was comprised of actual business of the investors and the director of one of those companies was unable to establish that he had carried out any actual business. Further, the investor companies were found to be shell or paper companies. In this regard, the report of the commission under section 131 sent to Kolkata and the physical entry done by the Inspector of that range established that at the registered address of the company, no business was being carried out and the premises at the address of the company were residential premises, which was substantiated from a copy of a photograph. The reasons for the formation of the belief by the Assessing Officer had a rational connection with or relevant bearing on the formation of belief that there had been escapement of income of the assessee from assessment in the assessment year 2014-15 because of its failure to disclose fully and truly all material facts. Writ was dismissed. (AY.2014-15).