The Income Tax Service discovers Rs 200cr worth of unaccounted cash in raids on film industry producers
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During the search, several incriminating documents and digital evidence etc. related to unrecorded cash transactions and investments were seized. Secret and hidden premises were also discovered during the search, added a press release from the IT department.
The searches in the cases of film financiers have turned up documents such as promissory notes etc. about unrecorded cash advances made to various film production houses and others. There is evidence of tax evasion at film production houses as the actual proceeds from the release of the films are far in excess of the amounts reported in the regular accounts. The unreported income they thus generate is used for undisclosed investments as well as various undisclosed payments.
Similarly, evidence seized in the cases from film distributors points to the confiscation of unrecorded cash at the cinemas. According to the evidence, distributors formed syndicates and systematically suppressed theatrical collections, resulting in suppression of actual revenues.
So far the search operation has resulted in the discovery of undisclosed earnings in excess of Rs. 200 billion. Rs.26 crore of undisclosed cash and Rs.3 crore of unrecorded gold jewelry were seized.
Apr 9, 2022