Income Tax officials continue to survey BBC offices in India: What does this mean and is it different from a raid?

The British Broadcasting Corporation, or as it is popularly known as the BBC, is in a world of pain. While it faces issues of credibility in the United Kingdom over its Chairman Richard Sharp-Boris Johnson scandal, in India, it is facing the heat from the Income Tax department. On 14 February, officials from the I-T department carried out ‘surveys’ at the BBC’s offices in New Delhi, Mumbai and two other locations. The ‘survey’, which began at 11.20 am on Tuesday and continued through the night, is pertaining to allegations of international taxation and transfer pricing irregularities involving the BBC, as per reports, adding that account details dating back as far as 2012 were being checked. Also read: ‘BBC ignored IT notices; did not comply with Transfer Pricing Rules, diverted profits’ The BBC confirmed the I-T Department’s actions, tweeting that they were “fully cooperating” and that they “hope to have this situation resolved as soon as possible”.

According to an NDTV report, documents have been seized and a few phones and laptops of journalists have been taken away. Employees were allowed to leave six hours after the survey began, only after their laptops were scanned.

Soon after the news broke, #ITRaid began trending, which led to tax officials insisting that it was a survey and not a raid, as it was being reported and that phones and laptops would be returned. But, what exactly is an I-T survey? How is it different from an I-T raid? What is BBC’s been accused of? Here’s all that we know about the matter. What’s an I-T survey? Very simply put, an Income Tax survey is conducted to collect information on hidden or undisclosed income and property. The survey at the BBC offices comes under Section 133A and Section 133B of the IT Act, 1961. These provisions enable the Income Tax authority to enter any place of business or profession or charitable activity within its jurisdiction, who must extend all help to the I-T officials to verify the account books or other documents, cash, stock, or other valuables, which may be relevant to or useful for any proceeding under the Act. As per the law, the tax official during the survey can make an inventory of any cash, stock or other valuables; it may record the statements of anyone, or place marks of identification on the books and documents, or take their extracts or copies. The law also permits the authorities to “impound and retain any books of account or other documents”. The provisions to impound or seize goods was introduced in 2002 through the Finance Act. However, prior approval of a senior official is required to retain such books for more than 15 working days. But, then what’s an I-T search? What people call an I-T raid is actually called a search. It is important to note here that the Income-Tax Act does not use the word “raid” anywhere, but Section 132 defines “search”. By law, an official can carry out a search if it has reasons to believe that an individual has undisclosed income or is hiding property, such as money, bullion, jewellery or other valuables on the premises. An I-T search can even be carried out when “any person to whom a summons or notice… has been or might be issued will not, or would not, produce or cause to be produced, any books of account or other documents which will be useful for, or relevant to, any proceeding” under the Act. During a search, the law also permits the authorities to break open the lock of any door, box, locker, safe, almirah, or other receptacles when the keys are not available. The law also allows the officials during a search to seize books of account, other documents, money, bullion or other valuable article found. During a search officials also place marks of identification on any books of account or other documents or make or cause to be made extracts or copies. [caption id=“attachment_12156272” align=“alignnone” width=“640”] A police officer stands near the reception desk of the office building that houses the BBC office in New Delhi. Officials are continuing their survey at the BBC office for a second day now. AFP[/caption] Don’t they sound similar? Even though the common man uses search and survey interchangeably, they are not the same officially. And even though they sound and seem similar, there are key differences to them. Firstly, surveys are a milder form of operation and the main aim is to seek information. However, searches are carried out to find unaccounted wealth and records of such transactions. This means that in a survey officials are still in the first stage of investigation whereas searches are further in the investigation stages. Also, officials can carry out surveys only during work hours, but searches can be conducted at any point of time. Surveys take place only at business premises. That’s not the case for searches — they can be done at an individual’s business or residence. In searches, officials are allowed to seize unaccounted assets, but can’t do the same during a survey. In case of non-cooperation, authorities carrying out a search can break open any door or window. However, that can’t be done during a survey. What has happened in the BBC survey so far? Now that we have understood the difference between a survey and a search, here’s what went down at the BBC offices. The tax officials arrived at the locations at 11.20 am on Tuesday and began their operation. A report in NDTV quoted a BBC journalist as saying that the officials used the keyword “tax" to search for information on the desktops after asking employees to log in. While officials carried out the survey, the broadcaster sent a message to employees, asking them to stay away from offices if they hadn’t come in already. Also, the staff was asked to avoid commenting on social media on the searches. On Wednesday morning, I-T sleuths continued their survey at the BBC offices, making copies of electronic and paper-based financial data of the organisation. As per news agency PTI, the officials are speaking to staffers in the finance and a few other departments. Officials also told PTI that some computer peripherals and mobile phones were cloned as part of the operation. The incident has spurred reactions from all corners — the Congress called the action “intimidation tactics” and linked it to the BBC documentary on Prime Minister Narendra Modi . Also read: BBC IT Survey: India’s ruling party derides broadcaster as ‘corrupt, nonsense’ The United States said it is aware of the survey operation but is not in a position to offer its judgement. “We are aware of the search of the BBC offices in Delhi by Indian tax authorities. I would need to refer you to Indian authorities for the details of this search. Beyond this discrete action, what I’ll say more broadly is the general point that I’ve consistently made in this context, but in a universal context as well," State Department Spokesperson Ned Price told reporters in Washington. With inputs from agencies Read all the Latest News , Trending News , Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook , Twitter and Instagram .