The assesee received share application money at a premium from the  investor companies were promoted by TG, who had been found to have promoted about 90 such companies. The AO had accepted the claim made by the assessee with regard to the genuineness of the transaction without any scrutiny and accepting the statement of the assessee as truthful. At that stage, the material information, which the assessee withheld and did not disclose, was that it was dealing with companies promoted by TG, who was engaged in the business of providing accommodation entries.  The AO  after recording the reasons  issued the reassessment notice . The assessee challenged the  issue of notice . Dismissing the petition the Court held that since the assessee did not dispute the receipt of monies from SI and NDC towards alleged capital infusion, the belief formed by the Assessing Officer, that taxable income of the assessee had escaped assessment could not, but, be described as reasonable. The notice of reassessment was valid.(AY. 2012-13)