Search warrant under income-tax search powers upheld where recorded information supported reasonable belief and non-arbitrary action.

A search warrant under section 132 of the Income-tax Act was challenged as being without jurisdiction for want of adequate information and reasonable belief. The Court found that the record showed receipt and recording of information, further material being sought, and consideration by higher officers before action was taken. As the exercise of power was founded on information and not shown to be arbitrary, the challenge to the search warrant failed. The warrant and section 132 proceedings were upheld, and the petitions were rejected.

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Issues: Whether the warrant of search issued under section 132 of the Income-tax Act, 1961 was without jurisdiction or otherwise invalid for want of adequate information and reasonable belief.

Analysis: The file produced before the Court showed that information had been received and recorded by the officers, further information had been solicited from some source, and the proposal had been considered by higher officers before action under section 132 was taken. The Court held that once the exercise of power under section 132 was shown to be founded on information and not arbitrary, no useful purpose would be served in entertaining the petitions. The challenge based on the alleged absence of justification for the search warrant did not succeed on the material examined.

Conclusion: The search warrant and the proceedings under section 132 were upheld, and the petitions were rejected.

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