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2016 (12) TMI 739 - HC - Income TaxValidity of reopening of assessment - reasons to believe - bogus entries made - Held that:- Whilst the assessee, no doubt, replied to the queries (especially question no.10) addressed to it on 21.12.2009, the materials on record clearly show that there was no full disclosure. The requirement in such cases - whether the AO is prima facie not satisfied about the genuineness of the transaction (Section 68), is not merely to establish the genuineness of the identity but also genuineness of the transaction itself and the creditworthiness of the investor. The materials supplied to the AO at the relevant time on 07.02.2009 (by the assessee) there is singular absence of documents such as bank details of the share applicants: undoubtedly, the cheque numbers were disclosed whereby amounts were received by the assessee and credited to its accounts. They were, however, not a full disclosure. A further look into the bank accounts or even the bank branches would be sufficient in the circumstances, which was possible if Bank details were given (i.e. name of bank branch etc.). Likewise, the ITR form disclosing returns raise more questions than satisfy the queries. They merely show that the share applicants paid paltry amounts as income tax even while claiming to have invested amounts ranging over ₹ 8 crores. Clearly, there was no full disclosure of material facts. Thus we are of the opinion that the petitioner is disentitled to relief. The impugned notice is valid. - Decided against assessee
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