IT dept recovers over Rs 26 cr in cash after raids on Tamil film financers, producers

The Income Tax (IT) department conducted raids on financiers, producers and distributors from the Tamil Nadu film industry and recovered over Rs 26 crore in undisclosed cash. Additionally, an undisclosed income of about Rs 200 crore and undisclosed gold jewellery worth Rs 3 crore were also seized by the department in the search and seizure operations conducted at over 40 locations in Chennai, Madurai, Coimbatore and Vellore. 

In the action by the IT department, several incriminating documents and digital evidence pertaining to the undisclosed cash transactions and investments have been seized, apart from the secret and hidden locations that were found during the search.

Incriminating documents seized 

The searches conducted at the film financiers revealed promissory notes relating to unaccounted cash loans disbursed to the film production houses and others, while the film production houses disclosed less income than was actually generated from the movie releases and mentioned in the books of accounts. The undisclosed income was used in various investment schemes and payments, which were also not declared. 

The film financiers colluded to form syndicates and declare less income generated from film collections. Hence the documents seized from them showed a collection of unaccounted cash from theatres. They suppressed their theatre collections resulting in the suppression of their real income.

The IT department in the search and seizure drive recovered in total, Rs 26 crore unaccounted cash, over Rs 200 crore of undisclosed income and Gold jewellery worth over Rs 3 crore, the entries for which were also not found in the account books.

(Image: PTI)

Source link