By Our Correspondent
CHENNAI/MUMBAI: The Income Tax Department is carrying out search and survey operations which started on 03.03.2021 on two leading film production companies, a leading actress and two Talent Management companies in Mumbai. Search operation is being carried out at Mumbai, Pune, Delhi and Hyderabad. The group is mainly engaged in the business of Production of Motion Pictures, Web Series, acting, direction and talent Management of celebrities and other artists. A total of 28 premises are being covered in different locations which includes residences and offices.
During the search, evidence of huge suppression of income by the leading Film Production house compared to the actual box office collections has been unearthed. The company officials have not been able to explain discrepancy of around Rs. 300 crore.
Evidence related to manipulation and under-valuation of share transactions of the production house amongst the film directors and shareholders, having tax implication of about Rs. 350 crore has been found and is being further investigated.Evidence of cash receipts by the leading actress amounting to Rs 5 crore has been recovered. Further investigation is going on.
Apart from this, non-genuine/bogus expenditure to related concerns by the leading producers/directorhaving tax implication of about Rs. 20 crore has been detected. Similar findings have been made in the case of the leading actress also.
At the office premises of the two talent management companies, huge amount of digital data has been seized in the form of emails, whatsapp chats, hard disk etc which are under investigation.
During the search, 7 bank lockers have been found which have been placed under restraint. Search is continuing in all the premises.The Income Tax Department carried out search and seizure operations on 03-03-2021on two groups of civil contractors in Southern Tamil Nadu. Searches and surveys were conducted in 18 premises mainly in Madurai and Ramnad districts.Based on intelligence inputs about the existence of cash, which is likely to be distributed for election purposes, searches were mounted on the business groups. The action resulted in the finding of unaccounted cash of Rs. 3 crorewhich was seized.
Other findings include the identification of the fact that the assessee is booking bogus expenses under various heads to reduce the profits. The declared profits were less than 2% of the turnover, when in actual accounts the profits exceeded 20%. Similarly more than 100 subcontractors were introduced to book expenses to meet illegal payments, and on-money payments for property purchases. These subcontractors introduced, had filed returns of income from the same IP address, and for the first time ever, showing only this receipt as their sole income.As a result of the search, unaccounted income of Rs. 175 crorehas been detected and unaccounted cash of Rs. 3 crorehas been seized. Further investigations are in progress.
