BBC Modi Documentary: IT 'survey' at BBC's offices in Mumbai and Delhi enters 3rd day

Mumbai: Income Tax (IT) surveys on British Broadcasting Corporation’s (BBC) Mumbai and Delhi offices continued for the third consecutive day to investigate issues related to international taxation and transfer pricing of subsidiary companies. Officials are gathering financial data from select staffers and making copies of electronic and paper data of the news organisation.

IT sleuths seek multiple details

IT sleuths are probing financial statements and accounts going back to 2012 for diversion of profits, alleged manipulation of prices, unauthorised benefits and tax advantages. The taxman has asked the BBC about its financial transactions, company structure and several other details about the organisation.

Officials clarified that the work of BBC TV, radio and editorial staff has not been restricted. “There has been no interference in the editorial work and the movement of the staff has not been restricted,” said a senior official. The IT department had landed at BBC’s offices on Tuesday at 11.30am.

According to tax experts, the survey conducted under section 133A of the IT Act is usually a precursor to a search and seizure operation; it takes place only at business premises. “IT officials look into the books of accounts, bank accounts, cash, stock and non-valuable documents during a survey,” explained a tax expert about the action.

"BBC defiant and non-compliant"

Officials alleged that the broadcaster was served with notices in the past but was “defiant and non-compliant”. An officer at the Santacruz office of BBC said, “Data analysis for shell companies, fund transfers and foreign transfers is in progress.”

A BBC News Press Team said in an official Twitter post, “We are supporting our staff during this time and continue to hope to have this situation resolved as soon as possible. Our output and journalism continues as normal and we are committed to serving our audience in India.”