I'm just adding the following as notes.
\begin{eqnarray}\det B &=& \sum_{\sigma\in S_{n+k}}\operatorname{sgn}\sigma\prod_{i=1}^k b[i,\sigma(i)]\prod_{ i=k+1}^{k+n} b[i,\sigma(i)] \tag{1}\\
\end{eqnarray}
Looking at equation $(1)$, if $i\leq k$ and $\sigma(i)>k$, then we have a zero summand as $b[i,\sigma(i)]=0$.
-That means we $\underline{\text{only}}$ consider values of $\sigma$ where $k<i$ or $\sigma(i)\leq k$ holds true.
$\bullet$ [Show $\pi \in S_k$.]
Assume $k<i$ or $\sigma(i)\leq k$ holds true.
Now, note for every $j$ with $j \leq k$, we know $\sigma(j) \leq k$, so $\sigma$ maps the values $\{1,2,\dots,k\}$ to $\{1,2,\dots,k\}$ (in some order). But this "uses up" all the values in that range as possible values of $\sigma(j)$. So $\sigma$ must map the values $\{k+1,k+2,\dots,n\}$ to $\{k+1,k+2,\dots,n\}$ (in some order). In other words, if $j>k$, we know $\sigma(j)>k$, too.
Let $(i, j)$ be an inversion in $\sigma$.
Suppose $i\leq k$ and $j>k$; show a contradiction. Thus, $\sigma(i)\leq k$ must hold true by our assumtion at the top. Also, note that $\sigma(j)>k$ holds true too (see above yellow portion). Thus, $\sigma(i)\leq k<\sigma(j)\implies\sigma(i)<\sigma(j)$. But this is a contradiction as $\sigma(j)<\sigma(i)$ by definition of an inversion. Thus, no inversions occur given this supposition.
Else, we know $k<i$ or $j\leq k$ must hold true.
Now, let $\pi(i):=\sigma(i)$ for $i\leq k$. Since $i\leq k$, we know $\sigma(i)\leq k$ must hold true which means $\pi(i)\leq k$. So, $\pi\in S_k$.
$\bullet$ [Show $\tau \in S_n$.]
Now, let $\tau(i):=\sigma(k+i)-k$ for $i\leq n$. Since $\sigma(k+i)\leq k+n$, we know $\tau(i)=\sigma(k+i)-k\leq k+n-k=n$. Thus, $\tau \in S_n$.
$\bullet$ [Show $\operatorname{sgn}\sigma=\operatorname{sgn}\tau \operatorname{sgn}\pi$. ]
Assumption: We showed earlier we are safe to assume $k<i$ or $\sigma(i)\leq k$ holds true; we will assume this now for the remainder of the proof.
Now, note for every $j$ with $j \leq k$, we know $\sigma(j) \leq k$, so $\sigma$ maps the values $\{1,2,\dots,k\}$ to $\{1,2,\dots,k\}$ (in some order). But this "uses up" all the values in that range as possible values of $\sigma(j)$. So $\sigma$ must map the values $\{k+1,k+2,\dots,n\}$ to $\{k+1,k+2,\dots,n\}$ (in some order). In other words, if $j>k$, we know $\sigma(j)>k$, too.
Let $(i, j)$ be an inversion in $\sigma$.
Suppose $i\leq k$ and $j>k$; show a contradiction. Thus, $\sigma(i)\leq k$ must hold true by our assumtion at the top. Also, note that $\sigma(j)>k$ holds true too (see above yellow portion). Thus, $\sigma(i)\leq k<\sigma(j)\implies\sigma(i)<\sigma(j)$. But this is a contradiction as $\sigma(j)<\sigma(i)$ by definition of an inversion. Thus, no inversions occur given this supposition.
Else, we know $k<i$ or $j\leq k$ must hold true.
$\bullet$ Case 2.1: If $i>k$ holds true, then $\sigma(i)>k$ (yellow portion above). Also, as $i<j$ (i.e. because $(i,j)$ is an inversion here), we know $k<i<j\implies \sigma(j)>k$, too.
<p><span class="math-container">$\bullet$</span> Case 2.2: Else, if <span class="math-container">$j\leq k$</span> holds true, we know that <span class="math-container">$i<j\leq k$</span>. And by the first sentence of the yellow part above, we know <span class="math-container">$\sigma(i)\leq k$</span> and <span class="math-container">$\sigma(j)\leq k$</span>.</p>
$\textbf{How do you show for case $2.1$ that this is an inversion in $\tau$?}$
Now, define $f(i):=i-k$. [Show $f(i)>0$ and $f(i)\leq n$.] As $i>k$, we know $f(i)=i-k>0$. By way of contradiction, suppose $f(i)>n$; show a cotradiction. Well, then $i-k>n\implies i>n+k$ (a contradiction as $i\leq n+k$). Thus, $\tau(f(i))$ is well-defined for any $i>k$ in the domain of $\sigma$. This means $\tau(f(i))=\tau(i-k)=\sigma(k+(i-k))-k=\sigma(i)-k$ represents the composition of functions we want for any $i>k$ in the domain of $\sigma$.
Now, let $(i,j)$ be an arbitrary inversion in $\sigma$ where $i>k$. [Show it is an inversion in $\tau$.] Well, $\tau(i)=\sigma(i)-k$ and $\tau(j)=\sigma(j)-k$. Since $(i,j)$ is an inversion in $\sigma$, we know $\sigma(i)<\sigma(j)$. Thus, $\sigma(i)-k<\sigma(j)-k$. Thus, $\tau(i)<\tau(j)$ which means $(i,j)$ is also an inversion in $\tau$.
$\textbf{And how do you show for case $2.2$ that this is an inversion in $\pi$?}$
Now, let $(i,j)$ be an arbitrary inversion in $\sigma$ where $j\leq k$. [Show it is an inversion in $\pi$. Note we just map these functions by $g(i):=i$ here.] Clearly, $j<k$ here. Clearly, $(i,j)$ is an inversion in $\pi$ as it was an inversion in $\sigma$ looking at how we defined $\pi$ earlier.
I was going through the very first sentence of the first way you did the proof, and I just wanted to know how you deduced $\sigma(j)>k$. We were assuming way earlier in the proof that $k<i$ or $\sigma(i)\leq k$ must hold true. You then wrote "For every pair $(i,j)$ with $i \le k$ and $j > k$", which means $\sigma(i)\leq k$ must hold true. But how do you know $\sigma(j)>k$?
– W. G. May 04 '19 at 15:24