IT raids on Kannada Film Industry discovers unaccounted income for over Rs 109 crores

IT raids on Kannada Film Industry discovers unaccounted income for over Rs 109 crores

Agency News

Bengaluru, Jan 06: The three-day raid and search operations conducted by the Income Tax authorities, on several film personalities in Karnataka, had unearthed an unaccounted income of about Rs 109 crore, seizure of over 25.3 kilos of gold and cash recovery of over Rs 11 crore.

In a press release it was stated that the operations was conducted in over 25 locations, involving over 180 officials drawn from places in Karnataka and Goa region. The Department conducted discreet enquiries for more than three months before the search and identified the modus operandi and the key players.

The Search action covered Film production Companies, Film Producers, Film Financiers and Actors. The Searches have been successful in unearthing evidences of suppression of income from film production distribution and exhibition as well as evidence of unaccounted cash expenditure in film. In particular evidence of unaccounted theatre collections in cash and consequential evasion of taxes have been found.
Evidence of unaccounted professional receipts by Artists, Cash investments in properties and jewellery through unaccounted income have been found.
Evidence has also been found of suppression of income from 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. In accordance with the normal process of the Investigation Wing will be launching some prosecution cases for tax evasion at a very early date.
The Income Tax department have also suggested the the Entertainment industry in Karnataka to follow laid down accounting standards by recording all transactions in books of accounts and pay due taxes, a press release from the IT department said.

It is learnt that houses and offices of other high profile personalities from Kannada Movie industry such as Yash, Sudeep, and producers Rockline Venkatesh, CR Manohar, and Vijay Kiragandur were raided. Some sources said that even the houses of late Rajkumar sons, Puneet Rajkumar and Shivrajkumar have been raided.

The searches began on January 3 and continued to the next day also. Sources from the sandalwood circles say the residence of producer Rockline Venkatesh in Mahalakshmi Layout in Bengaluru, the residence of Shivrajkumar near Manyata Tech Park, the residence of Puneet Rajkumar at Sadashivanagar and the residence of actor Sudeep in Jayanagar. Searches were also conducted at the residence of CR Manohar, MLC and producer of the 2018 film The Villain, which starred Shivrajkumar and Sudeep.