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2011 (12) TMI 59 - HC - Income TaxPray for quashing of the warrant of authorization for conducting search, issued under Section 132 of IncomeTax Act, 1961 and consequential action thereafter in issuing notices under Section 153A of the Act - satisfaction note running into seven pages - Held that:- The mode and manner in which all these notes are prepared, therefore, show the absence of any relevant material with authorities which would have enabled them to have "a reason to believe" that action under Section 132(1) of the Act was essential. No new material as such has been disclosed anywhere. No document or report of alleged discreet inquiry forms part of these notes. It is apparent that the entire exercise has been undertaken only because of the high growth noted by the respondents. The material like high growth, high profit margins, the contention in respect of or doubt about international brand and details thereof is available with the authorities. It is not their case that they had obtained any other information which was suppressed by the petitioners from them. The authorization issued under Section 132(1) of the Income Tax Act, 1961, is found bad and unsustainable. Consequently, exercise of search undertaken in pursuance thereof from 19.06.2009 to 21.07.2009 is illegal. Notice action under Section 153A of the Act, issued on 16.02.2010 is also, therefore, bad in law. - Decided in favor of assessee.
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