Income Tax Department conducts searches in Tamil Nadu


Income Tax Department conducts searches in Tamil Nadu

                                                         Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

                                                                                               New Delhi, 6th August, 2022


Income Tax Department conducts searches in Tamil Nadu

The Income Tax Department carried out search and seizure operations on
02.08.2022 in the cases of certain producers, distributors, and financiers associated
with the film Industry. The search operations were conducted at almost 40 premises
located in Chennai, Madurai, Coimbatore and Vellore.

During the course of the search operations, several incriminating documents and
digital evidence etc., relating to unaccounted cash transactions and investments have
been seized. Secret and hidden premises have also been unearthed during the search.

The searches in the cases of film financiers have revealed documents like
promissory notes etc., relating to unaccounted cash loans, which were advanced to
various film production houses and others. In the cases of film production houses,
evidences reveal tax evasion, as the actual amounts realized from the release of the
films are much more than the amounts shown in the regular books of account. The
unaccounted income so generated by them is deployed for undisclosed investments as
well as for various undisclosed payments.

Similarly, evidences seized in the cases of film distributors, indicate collection of
unaccounted cash from the theatres. As per the evidences, the distributors have formed
syndicates and have systematically suppressed the theatre collections, resulting in the
suppression of actual income.

So far, the search operation has resulted in detection of undisclosed income
exceeding Rs. 200 crore. Undisclosed cash of Rs.26 crore and unaccounted gold
jewellery exceeding Rs. 3 crore have been seized.

Further investigations are in progress.

                                                                                                                               (Surabhi Ahluwalia)
Pr. Commissioner of Income Tax(OSD)
(Media & Technical Policy)
Official Spokesperson, CBDT