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2017 (10) TMI 320 - ALLAHABAD HIGH COURTReopening of assessment - sham transaction converting the black money into that of share money or security money through a shell company - Held that:- In the present case after conclusion of the assessment order under Section 143(3) of the Act, the Assessing Officer received information that the disclosure, as made by the petitioner in the return, is bogus for the reason that it was a sham transaction only for the sake of converting the black money into that of share money or security money through a shell company. The aforesaid material was in no way unreliable or unauthentic, inasmuch as it was on the basis of statement of the person, running the shell company, who himself has confessed that the petitioner is one of the company, which had received a sum of ₹ 14,70,15,000/- as security premium during the assessment year 2008-09. The narration of facts and material in the reasons to believe impliedly amounts to saying that the assessee is guilty of not disclosing the true and full material facts necessary for assessment. In such a situation, even if there was a disclosure of the aforesaid amount in the return filed by the petitioner under Section 139 of the Act and the assessment was completed under Section 143(3) of the Act, it would not amount to be a full and true disclosure of the material facts necessary for completion of the assessment. We do not deem it fit to interfere with the re-assessment proceedings or impugned notice issued under Section 148 of the Act. - Decided against assessee.
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