The Income Tax (IT) Department recently launched surveys at the offices of the British Broadcasting Corporation (BBC) in Delhi and Mumbai under Section 133A and other provisions of the IT Act, 1961. The move has created a stir in media circles and raised concerns about the department’s intentions.
Section 133A
Section 133A of the IT Act grants the IT Department the authority to conduct “surveys” to gather hidden information. This provision became part of the IT Act following an amendment passed in 1964. Surveys are an essential tool for the IT Department to assess whether taxpayers are complying with their tax obligations. They allow the IT Department to collect information, such as books of accounts, documents, and other data that help it determine whether taxpayers are paying the correct amount of tax.
Under Section 133A of the IT Act, an authorised officer is allowed to enter any place of business, profession, or charitable activity within their jurisdiction to verify accounting books and other documents, as well as stocks, cash, and other assets that may be useful for the proceedings under the IT Act. The IT Department conducts surveys to verify tax returns filed by taxpayers and to check for any discrepancies in income or assets.
The BBC statement
The BBC has a long-standing presence in India and operates several offices in the country. The IT Department’s surveys were reportedly carried out in connection with the tax returns filed by the BBC’s Indian entities. The surveys were conducted to check whether the BBC’s Indian entities had correctly reported their income and assets in their tax returns. The BBC has issued a statement confirming that it is cooperating with the IT Department and providing the required information. The BBC has also stated that it is committed to complying with all tax laws in India and elsewhere.
The IT Department’s surveys
The IT Department’s surveys have raised concerns among media circles about the department’s intentions. The BBC is a respected media organisation that has been operating in India for several decades. The surveys have led to speculation about whether the IT Department is targeting the BBC for political reasons or if it is part of a wider crackdown on the media.
The IT Department has denied any political motive behind the surveys and stated that it is following due process. The IT Department has stressed that it conducts surveys as part of its regular tax assessment process and that they are not targeted at any specific individual or organisation.
The surveys at the BBC’s offices are not the first time that the IT Department has conducted surveys on media organisations. In the past, the IT Department has conducted surveys on media companies, including newspapers, television channels, and digital media companies, to verify their tax returns.
