In THE MATTER OF DHRUV KRISHAN MAGGU Vs UNION OF INDIA DELHI HIGH COURT HELD AS UNDER:
The challenge in the present appeal was to an order passed by the High Court of Gujarat whereby the warrant of authorization issued by the Income Tax officer under Section 132 of the Income Tax Act, 1961 was quashed on the ground that it is a fishing enquiry and the conditions precedent as specified in Section 132 of the Act are not satisfied. Consequently, all actions taken pursuant to such warrant of authorization were rendered invalid. The matter was placed before the Supreme Court which held the formation of opinion and the reasons to believe recorded are not judicial or quasi-judicial but administrative in character. The Court further held that the information material must be in possession of the authorised official and the formation of opinion must be honest and bona fide. It cannot be merely pretence. Consideration of any extraneous or irrelevant material would vitiate the belief /satisfaction.
CA. Praveen Agrawal