Jeremy,
Either way could make sense, depending on the context.
The man was looking for it. My dog had taken it into the garden before he started looking for it.
The man is looking for it. My dog has taken it into the garden at some time in the recent past. It is in the garden now.
I was able to find the reference on the net.
What had happened to the writer's bag?
After I had had lunch at the village pub, I looked for my bag. I had left it on a chair beside the door and it wasn't there! As I was looking for it the landlord came in.
"Did you have a good meal?" he asked.
"Yes, thank you," I answered, "but I can't pay for the meal. I haven't got my bag."
The landlord smiled and immediately went out. In a few minutes he returned with my bag and gave it back to me.
"I'm very sorry," he said. "My dog had taken it into the garden. He often does this."
You can see from the context that the past perfect is correct.
The man was looking for the bag. The dog had already taken it into the garden. The landlord found the bag, apologized, and explained why the man had not been able to find the bag: Because the dog had taken it into the garden (before the customer started looking for it, of course.)
This dog has a very bad habit.
If you used the present perfect tense you would change the story.
What had happened to the writer's bag?
After I had had lunch at the village pub, I looked for my bag. I had left it on a chair beside the door and it wasn't there! As I was looking for it the landlord came in.
"Did you have a good meal?" he asked.
"Yes, thank you," I answered, "but I can't pay for the meal. I haven't got my bag."
The landlord smiled . "I'm very sorry," he said. "My dog has taken it into the garden. He often does this."
He immediately went out. In a few minutes he returned with my bag and gave it back to me.
This is a bad dog.
.