The Income Tax (IT) Department is carrying out search and survey operations, which started on March 3 on two leading film production companies, a leading actress and two talent management companies in Mumbai.
According to an official statement, the 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 include residences and offices,” said the IT department.
It added that 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 the discrepancy of around Rs 300 crore,” it said.
The statement said evidence related to manipulation and under-valuation of share transactions of the production house amongst the film directors and shareholders, having tax implications 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,” it said.
Apart from this, IT department also found non-genuine or bogus expenditure to related concerns by the leading producers/director having tax implication of about Rs 20 crore has been detected. “Similar findings have been made in the case of the leading actress also,” it said.
At the office premises of the two talent management companies, the investigating agency said a huge amount of digital data has been seized in the form of emails, WhatsApp chats, hard disks, which are under investigation.
