Allowing the petition the court held that the correlation between the underlying material and the information which was available in the balance-sheet of the assessee was clearly not made.  The formation of belief by the ITO that income of the assessee chargeable to tax had escaped assessment, was unreasonable and irrational, as it could not be related to the underlying information ; something which was discernible from a bare reading of the order recording reasons.  The Principal Commissioner, who accorded sanction for initiating the process under section 147 of the Act, simply rubber-stamped the reasons furnished by the ITO for issuance of notice under section 148. There was breach of principles of natural justice. The notice was quashed. (AY. 2010-11, 2011-12)