New Delhi, August 6
The Income Tax Department has detected “undisclosed” income of more than Rs 200 crore after raiding some film producers, distributors and financiers in Tamil Nadu recently, the CBDT said on Saturday.
The searches were launched on August 2 and around 40 entity premises, which have not been identified, were targeted in Chennai, Madurai, Coimbatore and Vellore.
The department claimed to have seized Rs 26 crore of ‘undisclosed’ cash and gold jewelery worth over Rs 3 crore during the raids.
So far, the search operation has resulted in the detection of undisclosed income of more than Rs 200 crore, the Central Board of Direct Taxes (CBDT) said in a statement.
He said the department had seized a number of documents, digital devices relating to “unaccounted for” cash transactions and investments, even though “secret and hidden” premises had been discovered.
In the case of film production houses, tax evasion has been found, as the actual amounts made from the release of films are far greater than the amounts shown in the usual books of account, he said.
“The unrecognized income thus generated by them is deployed for undisclosed investments as well as various undisclosed payments,” the CBDT said.
The Council is the administrative authority of the department.
In the case of film distributors, according to the statement, the documents seized indicate the collection of “unaccounted money” from cinemas.
“According to the evidence, distributors formed unions and systematically suppressed theatrical collections, leading to the suppression of real income,” he alleged.
So far, the search operation has resulted in the detection of undisclosed earnings of more than Rs 200 crore, the CBDT said.