It appears that you probably did not pass the background check if you were refused on (7) of the stated Code (see below)
(6) states that you did not provide enough substantial evidence that you would need the permit (unbelievable, I know. I don't make the laws - just try to interpret). As you are probably aware, these loosely written laws grant the issuing department much latitiude in determining who what is or isn't "substantial" reason for the permit.
Also, the letter of refusal you received should tell you how to appeal the decision - if it does not then you will need to contact the Indiana State Police permits division and request the information you seek and how to appeal the current decision. You can try an email http://www.in.gov/isp/2676.htm and see if you can get a response that way. HERE is the State Police website for further information
Sec. 7. "Proper person" means a person who:
(1) does not have a conviction for resisting law enforcement under IC 35-44-3-3 within five (5) years before the person applies for a license or permit under this chapter;
(2) does not have a conviction for a crime for which the person could have been sentenced for more than one (1) year;
(3) does not have a conviction for a crime of domestic violence (as defined in IC 35-41-1-6.3), unless a court has restored the person's right to possess a firearm under IC 35-47-4-7;
(4) is not prohibited by a court order from possessing a handgun;
(5) does not have a record of being an alcohol or drug abuser as defined in this chapter;
(6) does not have documented evidence which would give rise to a reasonable belief that the person has a propensity for violent or emotionally unstable conduct;
(7) does not make a false statement of material fact on the person's application;
(8) does not have a conviction for any crime involving an inability to safely handle a handgun;
(9) does not have a conviction for violation of the provisions of this article within five (5) years of the person's application; or
(10) does not have an adjudication as a delinquent child for an act that would be a felony if committed by an adult, if the person applying for a license or permit under this chapter is less than twenty-three (23) years of age.
Best to you in this matter,
If my answer has been helpful, please ACCEPT my answer so I get credit for my effort to help you . If I can be of further help, let me know. Appropriate FEEDBACK is appreciated as is a bonus. Thanks ~ Michelle