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Journalism of Courage
After nearly three days, the Income Tax Department’s ‘survey’ at BBC India’s offices in New Delhi and Mumbai concluded on Thursday night, the British broadcaster announced.
The I-T department on Tuesday began carrying out a ‘survey’ to probe issues related to international taxation and transfer pricing of BBC subsidiary companies. As part of the operation, officials had been gathering financial data from some employees and making copies of electronic and paper data of the news organisation.
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”.
The tax department’s action came weeks after the British broadcaster had on January 17 released a documentary on the 2002 Gujarat riots titled “India: The Modi Question”. Days later, the Central government ordered YouTube and Twitter to take down links sharing the documentary, with officials saying it was found to be “undermining the sovereignty and integrity of India” and had “the potential to adversely impact” the country’s “friendly relations with foreign states” and “public order within the country”.
Following these ‘surveys’, the BJP had also hit out at the BBC, labelling the broadcaster as the “most Bhrasht Bakwaas Corporation (corrupt and rubbish corporation)” and alleging that it had a history of working with “malice against India”.
Meanwhile, the Supreme Court on February 3 issued notice to the Centre on petitions challenging actions taken by the latter in response to the BBC documentary. A bench of Justices Sanjiv Khanna and M M Sundresh asked the government to produce all relevant records and fixed the matter for hearing in April.
‘Stand by our colleagues who report without fear,’ says BBC
After the I-T survey ended, the BBC Thursday said it stood by its journalists “who will continue to report without fear or favour”, as the Income Tax Department ended its three-day ‘survey’ of the media organisation’s offices in Delhi and Mumbai. The BBC said its priority was the welfare of its staff, who faced “lengthy questioning” by authorities or were “asked to stay overnight”. It said its output was “back to normal”, and that it remained “committed to serving” its audiences in India.
“The Income Tax Authorities have left our offices in Delhi and Mumbai. We will continue to cooperate with the authorities and hope matters are resolved as soon as possible. We are supporting staff – some of whom have faced lengthy questioning or been required to stay overnight – and their welfare is our priority. Our output is back to normal and we remain committed to serving our audiences in India and beyond,” the BBC said in a statement Thursday night.
Nitish criticises IT surveys on BBC premises, rejection of demand for probe into Adani Group
Bihar Chief Minister Nitish Kumar on Friday said the Income Tax department’s surveys on BBC premises in Delhi and Mumbai were a “clear cut” indication of the Narendra Modi government’s intolerance of criticism, news agency PTI reported.
The JD(U) leader also criticised the brusque manner in which the demand for a Joint Parliamentary Committee probe into allegations against the Adani Group has been rejected by the Centre, pointing out that this was unlike the Vajpayee era when voice of the Opposition was given a patient hearing.
“I had been busy with my Samadhan Yatra all these days. But I read something about it (IT raids) in newspapers. I will try to learn about it in more detail,” Kumar said in reply to a question on the action against the international broadcaster.
Some trust foreign news outlets, not Indian agencies: Rijiju on I-T survey on BBC
Union Law Minister Kiren Rijiju on Thursday hit out at those criticising the Income Tax survey at the offices of BBC, saying some people trust foreign news outlets but not Indian investigative agencies.
Sharing an opinion piece by former Prasar Bharti CEO Shashi Shekhar Vempati, who argued that the outrage over the tax survey of BBC in India was misplaced, Rijiju said, “Expectedly, the same eco-system got outraged.” “These people trust foreign news agencies but they won’t trust Indian agencies. They swear by BBC but they won’t believe Indian courts. They’ll even abuse Supreme Court if one adverse judgement is passed,” he tweeted.
Previous cases of BBC’s run-ins with the I-T department
Earlier, the tax department had flagged distribution revenue earned by BBC World Distribution Ltd, as chargeable to tax as royalty, along with determining whether it has a Permanent Establishment (PE) in India.
The Indian Express had reported earlier that in December 2022, the Delhi Bench of the Income Tax Appellate Tribunal ruled that the distribution revenue received by the company from distribution of BBC World News Channel in India, is “not in the nature of royalty”. It had also said that such revenue, which had already been offered to tax by the Indian entity, BBC World India Pvt. Ltd, and that “no part of such income can again be attributed to the assessee notionally and taxed in India” and hence, asked for deletion of such addition by the tax authorities for 2007-08 and 2008-09 assessment years.
While the I-T survey on Tuesday is not connected to this particular case, sources said the tax department has had several run-ins with the BBC in the past over transfer pricing norm violations.
How Opposition parties reacted
Condemning the surveys, the Congress said the move shows that the Narendra Modi government is scared of criticism. The CPM and the BSP too slammed the government.
“First ban BBC documentaries. No JPC/enquiry into Adani exposures. Now IT raids on BBC offices! India: ‘Mother of democracy’?” asked CPM general secretary Sitaram Yechury on Twitter.
Former Jammu and Kashmir chief minister and PDP leader Mehbooba Mufti slammed the government saying, “Cause & effect of raids on the BBC Office is quite obvious. GOI is brazenly hounding those who speak the truth. Be it opposition leaders, media, activists or anyone else for that matter (sic)”.
Terming the Income-Tax department’s surveys at BBC offices as “political vendetta” of the BJP government, West Bengal Chief Minister Mamata Banerjee had said that the action against the British broadcaster has affected the freedom of press.
Samajwadi Party chief Akhilesh Yadav said that the “surveys” were a declaration of a “vaicharik aapatkal” (ideological emergency).
(With PTI inputs)
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