KOCHI: The Income-Tax (I-T) Department has unearthed alleged tax evasion by the Association of Malayalam Movie Artists (AMMA) to tune of Rs 7.18 crore. The organisation allegedly failed to disclose the revenue expenditure while filing the statement before the I-T Department in 2015.Though a probe in this regard was carried out by the I-T Department, Thiruvananthapuram, last year, AMMA had obtained an interim stay order on the legal proceedings from the Kerala High Court.
As per the details from the I-T Department, AMMA had received Rs 8.15 crore from two Malayalam private channels for organising star night shows between 2013 and 2015. While one channel paid Rs 6.10 crore, the other had paid Rs 2.05 crore.
"Of the Rs 8.15 crore, only around Rs 1 crore was disclosed to the I-T Department in the statement filed in 2015. Later, a probe was initiated, which found tax evasion to the tune of Rs 7.18 crore,” an I-T officer said.
AMMA office-bearers had filed a statement that the rest of the amount was earmarked for charity purposes.
“However, there was no clarity on the money spent for charity purposes,” the officer said.
Last year, AMMA had filed an appeal before the I-T Department challenging the findings on tax evasion. The organisation also obtained an interim stay on the legal action to be taken against it. “Since the investigation is over, we will approach the Kerala High Court seeking to vacate the stay,” the officer said.
AMMA office-bearers were not available for comment.
‘Proper inquiry needed’
Thrissur: Opposition leader Ramesh Chennithala on Thursday said a proper inquiry was required into the allegations of tax evasion by AMMA and the mafia link in the industry. “Allegations of black money being pumped into films also need to be ascertained. Though very few films make profit, the number of films produced every year has not changed,” he said.