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| 32 | Voice of CAI. Scope and applicability of the provisions.A. Conditions for authorizing searchSection 132 (1) contemplates three situations in which alone the search andSeizure proceedings can be authorized and these situations are as under:a. Situation one [ 132 (1) (a)]:Actual failure to produce the books of account or other documents inpursuance of a summon under section 131 (1) or a notice under 142 (1).(Even a slightest non compliance may lead to formation of belief).b. Situation two [132 (1) (b)]:Actual or anticipated failure to produce the books of account or otherdocuments in pursuance of a summon under Section 131 (1) or a noticeU/s 142 (1).The main difference between situation one and situation two lies inthe fact that the latter situation also covers an anticipated failure toproduce the books of account or other documents and also lays downa condition that these books of account or other documents shouldbe relevant for any proceedings under the Income Tax Act, under thisclause a formal notice is not essential, the authorizing officer musthave reason to believe that the person, whether or not a notice has beenserved on him is not likely to produce his books etc. In such a case theperson actually suppresses books of account and other documentswhich may be useful and relevant to an income tax proceedings. Herethe authorizing authority, if challenged has to prove the basis of hisbelief [ Mamchand and Co. V CIT (1970] 76 ITR 217 (Cal) also seeKusum Lata (1989) 180 ITR 365 (Raj).c. Situation three {Section 132 (1) (c)]:Possession of undisclosed assets i.e. money, bullion, jewellery or othervaluable article or thing, which have not been or, are not likely to be,disclosed for the purposes of the Income Tax Act. This situation is by farthe most important situation in which search and seizure proceedingsare initiated.* In all the above conditions warrant of authorization has to be issued inForm No. 45.