Income Tax Dept Accuses BBC of Violating Transfer Pricing Rules; UK Govt 'Closely Monitoring'

TMC MP Mahua Moitra has asked if the “raids” on the BBC offices would be followed by one on “Mr A” in an apparent dig at Adani Group chief Gautam Adani. “Since agencies doing these Valentine Day ‘Surveys’ how about @IncomeTaxIndia, @SEBI_India & @dir_ed conduct one on govt’s most valued sweetheart Mr. A?,” she said in a tweet tagging SEBI and the Enforcement Directorate.

Amid the controversy over BBC’s documentary on Prime Minister Narendra Modi and the Gujarat riots, income tax (I-T) sleuths reached the doors of BBC India offices on Tuesday. Sources reveal that BBC India has been on the I-T radar for long and the matter relates to violation of the Transfer Pricing clause. BBC India, which operates on behalf of BBC London, produces television software and other news material on behalf of the parent company. Sources in the I-T department confirmed to CNN-News18 that only two offices of BBC India were surveyed – one in Mumbai and other in Delhi. Investigation against BBC is being done by the Director General (Mumbai) of the I-T department. Read More

Mobile phones have been returned to BBC employees. Around 10-15 Income Tax department officials are still present inside the Delhi office.

The Income Tax Department on Tuesday conducted a survey operation at the BBC’s offices in Delhi and Mumbai as part of an investigation into alleged tax evasion, officials told PTI. The surprise action comes weeks after the broadcaster aired a two-part documentary, “India: The Modi Question”. The action, it is learnt, was initiated by the director general of the Income Tax Department in Mumbai across three premises. Read More

The British Broadcasting Corporation (BBC) has responded to the income tax surveys being conducted at its Delhi and Mumbai offices. BBC News in a statement said it was fully cooperating with the Income Tax department. “The Income Tax Authorities are currently at the BBC offices in New Delhi and Mumbai and we are fully cooperating. We hope to have this situation resolved as soon as possible.” Read More

News Agency ANI quoted Union Minister Anurag Thakur as saying, “Income Tax department conducts surveys from time to time where irregularities are found, and when survey is completed, they give information. When this survey of IT will be completed, we will give you all that information in detail.”

The UK government sources said, “We are closely monitoring reports of tax surveys conducted at the offices of the BBC in India.”

Issuing a statement the Income Tax department said, “Today, the Income authorities conducted a survey on the BBC premises 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. In the case of the BBC, there has been persistent non-compliance with the abovementioned 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.”

The Congress on Tuesday took a swipe at the government over the Income Tax survey operation at the BBC offices, saying while they are demanding a JPC on the Adani issue it is after the BBC. Congress general secretary Jairam Ramesh also used a Hindi idiom to attack the government, saying “Vinash Kale, Vipreet Buddhi” (When doom approaches, a person’s intellect works against his interest).

The Editors Guild of India (EGI) has expressed its deep concerns about the IT “surveys” being carried out at the offices of BBC India.

The Communist Party of India (Marxist) on Tuesday condemned the searches conducted by the Income Tax department of the BBC offices in Delhi and Mumbai. Issuing a statement, the CPI(M) said, “This is a blatant attempt to intimidate and harass the television channel for having telecast the documentary, ‘The Modi Question’. It is a standard tactic of the Modi government to intimidate the Indian media through raids conducted by the Income Tax department and other agencies. This has now been extended to a foreign media enterprise operating in India. This coercive action will further reinforce internationally the image of the Modi government as an authoritarian regime which seeks to suppress media criticism.”

Income Tax department conducted what is being called a ‘survey’ at BBC’s Mumbai and Delhi offices on Tuesday, days after the release of the controversial documentary by the UK broadcaster on Prime Minister Narendra Modi and 2002 Gujarat riots sparked a massive political row. Congress was quick to react to the news of the I-T survey at BBC offices and said termed it an “undeclared emergency”. READ MORE

The IIT-Bombay on Tuesday strongly refuted claims suggesting that ‘discrimination’ caused the death by suicide of a Final Year B.Tech. Dalit student on its campus on February 12 or allegations that it amounted to ‘institutional murder’.

“Based on initial inputs from friends (of Darshan Solanki, 18), there is no indication that the student faced any such discrimination. It is wrong to make such accusations when the police are still investigating the case. Please wait for the completion of the ongoing police investigation as well as an internal investigation by IIT-B which will be done in a time-bound manner,” said an official spokesperson.

The Income Tax Authorities are currently at the BBC offices in New Delhi and Mumbai and we are fully cooperating. We hope to have this situation resolved as soon as possible: BBC

The key focus of these surveys is to look into the manipulation of prices for unauthorised benefits, including tax advantages by BBC. These surveys have been undertaken due to BBC’s persistent non-compliance with the norms, making it a repeat offender: Sources told CNN News18.

“BBC has been non-compliant under transfer pricing rules; persistent and deliberately violative of transfer pricing norms; and deliberately diverted significant amount of the profits and have not followed the arm’s length arrangement in the case of allocation of profit,” they added.

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“Surveys were conducted on the basis of international taxation and transfer pricing irregularities. Documents related to the business operations of the company and those related to its Indian arm are being surveyed. Only the business premises of a company to be raided, residences and other locations of its promoters or directors will not be under the scanner,” Sources in the IT department told CNN News18.

” In Mumbai, the income tax team is present at the Kalina location, whereas employees at Bandra/Khar location were asked to go home,” they added.

The BBC has two offices in Mumbai – one at the Bandra Kurla Complex (BKC) and another one at Khar. The IT officials were present at the BKC office premises. As per reports, employees at BBC’s Khar office were asked to go home.

A fire broke out at the top floor of a paying guest (PG) accommodation after two LPG cylinder blasts in south Delhi’s Gautam Nagar area on Tuesday, said a fire department official.

According to Atul Garg, the Director of Delhi Fire Service (DFS), the fire department received a call regarding the incident at around 9.10 a.m. near Gurudwara, Anand Apartment, Gautam Nagar area. “Acting on the call five, fire tenders were rushed to the spot and the blaze is under control,” said Garg.

“Two LPG cylinder blasts in the temporary structure made on the rooftop of a building comprising ground plus three floors. No casualty has been reported as of now,” Garg added.

The Income Tax Department on Tuesday conducted a survey operation at the BBC’s offices in Delhi and Mumbai as part of a tax evasion investigation, officials said. The surprise action comes weeks after the broadcaster aired a two-part documentary on the 2002 Gujarat riots and India, which was banned by the government, PTI reported. READ MORE

Income Tax department conducted what is being called a ‘survey’ at BBC’s Mumbai and Delhi offices on Tuesday, days after the release of the controversial documentary by the UK broadcaster on Prime Minister Narendra Modi and 2002 Gujarat riots sparked a massive political row. READ MORE