Allowing the appeal of the revenue the Court held that; the stockbrokers had elucidated on the sham and bogus nature of the share transaction, i.e., investment and sale of worthless shares through unknown persons who were the assessee’s representatives. The other facts had been accepted and admitted in the statement recorded by the Investigation Wing. The notice of reassessment for the assessment year 1999-2000 was valid.  The Tribunal for the assessment year 2000-01 did not record the “reasons to believe” and without reproducing and examining them, following the reasons given for the assessment year 1999-2000, quashed the reopening of the assessment under sections 147 and 148 of the Act and also deleted the addition of Rs.40 lakhs made by the Commissioner (Appeals) on substantive basis. As the Tribunal had not considered and examined the “reasons to believe” for the assessment year 2000-01, an order of remand was to be issued for fresh consideration. (AY. 1999-2000, 2000-01)