income tax
On August 2, 2022, the Income Tax Department executed search and seizure operations targeting specific producers, distributors, and financiers within the film industry. These operations spanned approximately 40 locations across the cities of Chennai, Madurai, Coimbatore, and Vellore.
Throughout the search, officials uncovered a range of incriminating documents and digital evidence linked to unaccounted cash transactions and undisclosed investments. The search revealed several concealed and secret premises associated with the subjects under investigation.
In the investigations concerning film financiers, crucial documents such as promissory notes related to unreported cash loans to various film production entities were discovered.
Evidentiary findings related to film production houses indicated significant tax evasion. It was noted that the actual revenue from film releases substantially exceeds the figures recorded in their official accounts. This unreported income is believed to be reinvested in undisclosed ventures and used for various concealed payments.
Similarly, investigations into film distributors revealed instances of unaccounted cash collections from theater operations. Evidence suggests that distributors have organized syndicates to intentionally underreport theatre revenues, thereby obscuring actual income streams.
Thus far, these operations have led to the identification of undisclosed income exceeding Rs. 200 crore. Additionally, authorities have seized cash amounting to Rs. 26 crore and unaccounted gold jewellery valued at over Rs. 3 crore.