, (ANI): The Income Tax sleuths carried out raids at the premises of various actors and other personalities of Kannada film industry and claimed to have unearthed unaccounted income of about Rs 109 correct besides seizing "undisclosed assets valued at Rs 11 crore including cash of Rs 2.85 cr and gold jewellery 25.3 kg."
The searches by the Investigation Wing of Income Tax Department on various persons and entities in the cinema industry were initiated on January 3 and spanned 21 premises, a statement issued by the I-T Department said on Sunday.
"The searches resulted in the seizure of undisclosed assets valued at Rs 11 crore including cash of Rs 2.85 cr and gold jewellery of 25.3 kg. Incriminating evidence found when put across to the persons involved resulted in the admission of unaccounted income of about Rs 109 crore. There are many issues on which evidence has been found but no admission has been made. The detection of concealed income will be a much higher figure," said the statement.
According to the I-T Department, the search action covered film production companies, film producers, film financiers, and actors. "The searches have been successful in unearthing evidence of suppression of income from film production distribution and exhibition as well as evidence of unaccounted cash expenditure in the film. In particular evidence of unaccounted theatre collections in cash and consequential evasion of taxes have been found," added the statement.
I-T Department claimed to have conducted "discreet inquiries for more than three months before the search and identified the modus operandi and the key players." "Evidence of unaccounted professional receipts by artists, cash investments in properties and jewellery through unaccounted income have been found," said the I-T Department.
"Evidence has also been found of suppression of income from the sale of audio, digital and satellite rights, unaccounted cash receipts from distributors, and of expenses from undisclosed and unaccounted sources. Some of the evidence found like diversion of cash collected by theatres will be of interest to other revenue and enforcement agencies and will be duly shared with them," further stated the statement.
"In accordance with the normal process of the Investigation Wing will be launching some prosecution cases for tax evasion at a very early date," said the I-T Department, while requesting "the entertainment industry in Karnataka to follow laid down accounting standards by recording all transactions in books of accounts and pay due taxes." (ANI)