IT sleuths at BBC office: Why it is a survey and not a search or raid

They key focus of the surveys was to look into the manipulation of prices for unauthorised benefits including tax advantages

New Delhi, Feb 14: The Income Tax Authorities conducted a survey on the premises of the BBC in Delhi, in view of the BBC's deliberate non-compliance with the Transfer Pricing Rules and its vast diversion of profits.

It is pertinent to note that the above exercise conducted by the tax authorities, is called "survey" not search/raid as per the provisions of the Income Tax Act. Such surveys are routinely conducted and are not to be confused to be in the nature of a search/raid, sources tell OneIndia.

In the case of the BBC, there has been persistent non-compliance with the above mentioned rules for years. As a result of the same, several notices have been issued to the BBC. However, the BBC has been continuously defiant and non-compliant and has been significantly diverted their profits.

The key focus of these surveys is to look into manipulation of prices for unauthorised benefits, including tax advantages. These surveys have been undertaken due to BBC's persistent non-compliance of the norms, making it a repeat offender.

In this case BBC has been:

a. non-compliant under transfer pricing rules;

b. persistent and deliberately violative of transfer pricing norms; and

c. deliberately diverted significant amount of the profits and have not followed the arm's length arrangement in the case of allocation of profit

Accordingly, the surveys have been conducted with a view to investigate BBC's violation of the Transfer Pricing Rules and its diversion of profits.

The BJP in a short statement, " we hope to have this situation resolved as soon as possible."

The BBC also said that it was fully cooperating with the authorities.

In a memo to the staff, BBC asked them not to panic and said the the situation is being handled.

The authorities said that they needed some clarifications and for that the team was visiting the BBC office e. Our officers had gone to check on account books. These are not searches, the authorities also said.

The BJP has ripped the BBCC and called it venomous and shallow. The BBC had run into controversy after it put out a documentary on Prime Minister, Narendra Modi. "No individual or agency can be above the law. If they are working in India, they need to follow Indian law. If they have not done anything illegal, then what's the worry? Why are the opposition parties defending the agency for cheap and petty politics," BJP's spokesperson, Gaurav Bhatia said.