I-T dept surveys BBC offices; BJP, Oppn lock horns

New Delhi: The Income Tax department on Tuesday conducted survey operations at the BBC's offices in Delhi and Mumbai as part of an investigation into alleged tax evasion, officials said. The action, which led to a sharp political debate with the ruling BJP accusing the BBC of "venomous reporting" and the opposition slamming the move, comes weeks after the broadcaster aired a two-part documentary, "India: The Modi Question".

The survey is being carried out to investigate issues related to international taxation and transfer pricing of BBC subsidiary companies, officials said. BBC had been served notices in the past but was "defiant and non-compliant" and had significantly diverted its profits, they alleged. The department is looking at documents related to the business operations of the London-headquartered broadcaster and its Indian arms, they said. The BBC said it is fully cooperating with tax authorities. "The Income Tax authorities are currently at the offices in New Delhi and Mumbai and we are fully cooperating. We hope to have this situation resolved as soon as possible," the press office of the BBC said on Twitter.

The synchronised surprise action began at 11 am with Income Tax officials reaching the BBC offices in Delhi and in Mumbai. BBC staffers were asked to keep their phones at a particular spot inside the premises and cooperate, officials said. According to I-T rules, transfer pricing "generally refers to prices of transactions between associated enterprises which may take place under conditions differing from those taking place between independent enterprises. It refers to the value attached to transfers of goods, services and technology between related entities". It also refers to the value attached to transfers between un-related parties which are controlled by a common entity.

As news spread, curious onlookers and media crews were seen outside the BBC office at central Delhi's Kasturba Gandhi Marg. In Mumbai, the office is at the upscale Santa Cruz area. As part of a survey, the Income Tax department only covers the business premises of a company and does not raid residences and other locations of its promoters or directors. The Supreme Court last week dismissed a plea seeking to impose a complete ban on the BBC in India in the wake of the controversial documentary, terming the petition "entirely misconceived" and "absolutely meritless". On January 21, the government issued directions to block multiple YouTube videos and Twitter posts sharing links to the documentary. The Editors Guild of India said it was "deeply concerned" about the Income Tax surveys and termed it continuation of a trend of using government agencies to intimidate and harass media outlets critical of the ruling establishment.

In a statement, the Guild said great care and sensitivity should be shown in all such investigations so as to not undermine the rights of journalists and media organisations. The BJP, in its reaction, accused the BBC of unleashing "venomous" reporting against India, and alleged that its propaganda and the Congress' agenda go together. BJP's national spokesperson Gaurav Bhatia rejected the Congress' criticism of the I-T action and said the government agency should be allowed to do its job. He termed the BJP the "most corrupt" organisation in the world and said the Congress should remember that then prime minister Indira Gandhi had also banned the broadcaster.

The BBC said on Tuesday that it is "fully cooperating" with the Income Tax authorities who are at its offices in New Delhi and Mumbai and hoped that the situation will be resolved "as soon as possible". The British Broadcasting Corporation, the UK-headquartered public broadcaster, did not give further details of what has been described as "surveys" by the I-T department, which reportedly involved local BBC staff being prevented from entering the office premises and their mobile phones being shut down.

The Editors Guild of India on Tuesday expressed concern over the Income Tax (I-T) surveys at BBC India offices. The guild said that the surveys by the I-T department is in continuation of a trend of using government agencies to intimidate and harass press organisations that are critical of government policies or the ruling establishment. "In September 2021, offices of NewsClick and Newslaundry were similarly "surveyed" by the I-T department.