BBC’s I-T survey: ‘Non-compliance’ likely trigger

As the income tax department continued with its surveys for the second consecutive day Wednesday on the premises of the British Broadcasting Corporation (BBC) at Delhi and Mumbai, two persons close to the development said 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,” a person aware about the development, who did not wish to be quoted, said.