CHENNAI: Undisclosed income of more than Rs 200 crore was detected during income tax searches carried out against producers, distributors and financiers associated with Tamil film industry on August 2.The search operations were conducted in at least 40 places in Chennai, Madurai, Coimbatore and Vellore. Undeclared cash of Rs 26 crore and gold jewellery worth more than Rs 3 crore were seized during the operation, the I-T department said.
Evidence also indicated collection of unaccounted cash from theatres and formation of syndicates by distributors to systematically underreport collections to suppress actual income, sources said.In the case of production houses, the actual amount realized from the sale of films was much more than the amount shown in the books of accounts, hinting at possible tax evasion, sources said. The unaccounted income was used for undisclosed investments and making undeclared payments, an I-T spokesperson said.Top film producers, financiers and distributors, including Anbu Chezhiyan, Kalaipuli Thanu, SR Prabhu and Gnanavel Raja, had come under the department’s scanner.
According to film industry sources, this was the biggest I-T search operation carried out in recent days.
The department, however, did not give any breakup of the undisclosed income or cash or jewellery seized from various producers, distributors and financiers. The searches on film financiers unearthed documents like promissory notes relating to unaccounted cash loans that were given to various film production houses and others, sources said.Several incriminating documents and digital evidences relating to unaccounted cash transactions and investments have also been seized. Secret and hidden chambers have also been unearthed during the searches, the spokesperson added.