New Delhi: In India’s national capital Delhi and Mumbai, the British Broadcasting Corporation (BBC) offices in the national capital of India on Tuesday remained in turmoil due to the survey of the Income Tax Department. The Income Tax Department has accused the BBC of violating transfer pricing rules, while this British news organization has issued a statement saying that it is fully cooperating with the Income Tax authorities.
BBC released statement
The British Broadcasting Corporation (BBC) has not given much detail regarding the income tax survey. It is learned that during this survey, local BBC employees were allegedly prevented from entering the office premises and their mobile phones were switched off. A BBC spokesperson issued a statement saying, “Income Tax officials are currently at BBC offices in New Delhi and Mumbai and we are co-operating fully.” We hope that this situation will be resolved at the earliest.
Income tax department explained the reason for the survey
On the other hand, Income Tax officials told in New Delhi that the Income Tax Department on Tuesday conducted a ‘survey operation’ in the offices of BBC in Delhi and Mumbai as part of the investigation into alleged tax evasion. The Income Tax Department issued a statement in this regard saying, “In view of the willful non-compliance of Transfer Pricing Rules by BBC and huge diversion of its profits, Income Tax officials today conducted a survey at the premises of BBC in Delhi.”
The Income Tax Department said, ‘In the case of BBC, the above rules are not being followed consistently over the years. As a result of that, several notices have been issued to BBC. However, the BBC continues to be defiant and non-compliant and diverts its profits extensively. The main focus of these surveys is to look into price gouging for unauthorized benefits including tax benefits. These surveys have been carried out because of the BBC’s persistent non-compliance with the rules, of which it has become a repeat offender.
‘This survey should not be called raid or search’
The agency also pointed out that it is pertinent to note here that as per the provisions of the Income Tax Act, the above exercise carried out by the tax authorities is termed as “survey” and not search or raid. Such surveys are conducted regularly and should not be confused with searches/raids.
Let us tell you that this surprise action happened a few weeks after the British Broadcasting Corporation (BBC) aired a two-part documentary ‘India: The Modi Question’. This documentary is on the riots in Gujarat in 2002, when Narendra Modi was the Chief Minister of the state. At the same time, India termed this documentary as ‘a part of propaganda’ and said that it is a part of propaganda to advance a particular ‘wrong narrative’.
