Invalid search authorisation vitiates consequential block assessment where recorded satisfaction and statutory preconditions are not shown.

A search authorisation under section 132 must rest on recorded satisfaction, reasonable belief, and demonstrated compliance with statutory preconditions; the record here did not produce the satisfaction note or convincing material showing lawful exercise of the search power. On those facts, the search was held invalid, and the consequential block assessment framed under section 158BC could not survive. The decision emphasises that a search is a serious invasion of privacy and must be authorised strictly in accordance with law, with the safeguards for search and seizure satisfied on the record.

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Issues: Whether the search authorisation under section 132 was valid and, if not, whether the block assessment framed under section 158BC could survive.

Analysis: The record did not disclose the satisfaction note recording the conditions precedent for authorising search. The Tribunal held that the power under section 132, being a serious invasion of privacy, must be exercised strictly in accordance with law and in harmony with the safeguards applicable to search and seizure, including the requirement of recorded grounds and reasonable belief. On the facts, the conversion of survey into search, the absence of convincing material showing compliance with the statutory preconditions, and the non-production of the satisfaction note led to the conclusion that the authorisation was not shown to be valid. Since the search itself was held invalid, the block assessment made in consequence thereof could not stand.

Conclusion: The search authorisation was invalid and the block assessment under section 158BC was bad in law.

Final Conclusion: The assessee succeeded because the foundational search action was held unlawful, rendering the consequential block assessment unsustainable.

Ratio Decidendi: Where the legality of a search under section 132 is challenged, the revenue must show compliance with the statutory preconditions through recorded satisfaction and reasonable belief; failure to do so vitiates the consequential block assessment.

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