Now, the Income Tax Department has issued an official statement regarding the raids they carried out in Mumbai. The statement read: “The Income Tax Department is conducting search and survey operations that began on 03.03.2021 at two leading film production companies, a leading actress and two talent management companies in Mumbai. The search operation is taking place in Mumbai, Pune, Delhi and Hyderabad. The group is primarily engaged in the business of film production, web series, acting, directing and talent management of celebrities and other artists. A total of 28 stores are being covered in different locations that include residences and offices ”.
The statement further read: “During the search, evidence has been uncovered of a massive revenue suppression by the leading film producer compared to actual box office receipts. Company officials have not been able to explain the discrepancy of around Rs. 300 crore. Evidence related to manipulation and undervaluation of production house stock transactions between film directors and shareholders, with a tax implication of approximately Rs. Rs 350 million has been found and is being investigated further. Evidence has been recovered from the lead actress’s cash receipts worth 5 million rupees. More investigations are underway. ”
The statement also said that the team has seized a large amount of digital data in the form of emails, WhatsApp chats, hard drive, etc., which are under investigation. “Apart from this, non-genuine / bogus expenses to related concerns on the part of the main producers / directors having a tax implication of approximately Rs. 20 crore have been detected. Similar findings have also been made in the case of the lead actress. At the offices of the two talent management companies, a large amount of digital data has been seized in the form of emails, WhatsApp chats, hard drive, etc., which is under investigation. During the search, 7 bank lockers have been found that have been placed under restriction. The search continues in all the facilities ”.
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