IT Department Raids on Tamil Film Producers and Financiers; Detects Rs.200 Crore Tax Evasion
It also finds gold jewellery worth more than Rs 3 crore after inspecting the homes of major Tamil cinema makers, distributors, and financiers for four days straight in Chennai and surrounding areas.
The searches began on August 2 and spanned 40 locations in Chennai, Madurai, Coimbatore, and Vellore belonging to the unnamed businesses. During the raids, the department claimed to have confiscated “undisclosed” cash of Rs 26 crore and gold jewellery worth more than Rs 3 crore.
“Promissory notes and other records of unexplained cash loans to numerous film production companies and other entities have been seized as a result of searches in financiers. Seizures at movie studios expose tax fraud because the sums really made from film sales are substantially higher than those reported in the ordinary books of accounts “a note from the Central Board of Direct Taxes stated.
According to department sources, “the unaccounted income so created by them is employed for secret investments as well as for different undisclosed payments.”
The income tax division has searched around 40 locations in Chennai, Madurai, Coimbatore, and Vellore. Income tax officers were given custody of the offices and homes of financier and producer Anbuchezhiyan, producers Dhanu, S R Prabhu, and Gnanavelraja, and they conducted searches there.
According to sources, IT investigators also found hidden and covert locations belonging to persons who were being searched.