The Income Tax department on Thursday morning continued its 'survey' at various offices operated by the British Broadcasting Company (BBC) in Mumbai and Delhi for the third consecutive day, news agency PTI reported. Since Tuesday, the I-T department has been carrying out a 'survey' to probe issues related to international taxation and transfer pricing of BBC subsidiary companies. As part of the operation, officials have been gathering financial data from some employees and making copies of electronic and paper data of the news organisation, according to PTI. Authorities told PTI the exercise would continue for some more time, adding that the "exact time frame to call the operation closed rests entirely on the teams on the ground”. The survey comes weeks after the Centre issued directions to take down the BBC's controversial documentary about Prime Minister Narendra Modi and the 2002 Gujarat riots, titled: ‘India: The Modi Question’. Opposition parties have accused the Centre of carrying out “political vendetta” through the I-T department. Last week, the Supreme Court dismissed a plea seeking the imposition of a complete ban on the BBC in India in the wake of the controversial documentary, terming the petition "entirely misconceived" and "absolutely meritless”. ‘Non-compliance’ likely trigger Two persons close to the development told The Indian Express that while transfer pricing cases do not typically entail survey or search actions, they are likely being resorted to in this case for the reason of “non-compliance”. “Tax cases involving transfer pricing rules and diversion of profits typically involve undertaking assessments by an assessing officer and issuance of a notice before undertaking any survey/search action. However, the reason for non-compliance is being cited for these surveys. Then, the assessing officer can opt for the legal provision to choose survey action against the company,” said a person aware about the development, who did not wish to be quoted. (With PTI inputs)
