I-T searches at the offices of Tamil cinema investors and producers: Tax evasion of Rs 200 crore was discovered

Income tax authorities raid homes of Tamil film producers, producers, dealers, and financiers . Seizures reveal tax evasion in film production houses because profits earned from the release of films are much more than the amounts reported in the regular books of account .

CHENNAI: The I-T department reported on Saturday that it had found undisclosed income worth more than Rs 200 crore after scrutinizing the homes of many Tamil film producers, producers, dealers, and financiers in Chennai and other districts for four days in a row, apart from looting Rs 26 crore in cash and gold jewelry worth more than Rs 3 crore.Financiers' searches have resulted in the confiscation of promissory notes and other papers related to unaccounted cash loans to various film production companies and others.According to a note from the Central Board of Direct Taxes, seizures reveal tax evasion in film production houses because the actual profits earned from the release of films are much more than the amounts reported in the regular books of account.According to department sources, the unaccounted income resulting from them is used for undisclosed investments as well as various undisclosed payments.

According to the note, the distributors have formed alliances and have systematically suppressed the theatre collections, resulting in the denial of actual income.Since August 2, the income tax department has carried out searches on nearly 40 premises in Chennai, Madurai, Coimbatore, and Vellore.The income tax authorities searched the offices and residences of financier cum producer Anbuchezhiyan, producers Dhanu, S R Prabhu, and Gnanavelraja.According to reports, I-T sleuths also discovered uncharted and obscure premises of those being searched.