TAX PICKINGS (NO PRESUMPTION THAT A SEARCH HAS BEEN INITIATED WITHOUT ANY BASIS)

"It is trite that under section 132 (1) of the Act the jurisdictional facts should be established by the Department to justify a search authorization. But there cannot be any presumption that there is no such information available with the Department. The observations by the Delhi High Court that the information which forms the basis of such search operation must be based on credible information and there must be a nexus between the information and the search ordered are unexceptionable To the same effect, the decision in Laljibhai Kanjibhai Mandalia (supra) where the Gujarat High Court found in favour of the assessee after perusing the satisfaction note. Whether the legal requirement is met will obviously depend on the facts of each case."

-Shiva Cement Ltd. and Ors. vs. Director of Income-Tax (Investigation) and Ors, [2021] 439 ITR 92 (Orissa)

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