I-T Dept seizes assets worth Rs 11 cr, incriminating documents of Rs 109 cr from Kannada film industry people

The I-T Department has seized undisclosed assets to the tune of Rs 11 crore including Rs 2.85 crore cash, 25.3 kilogram gold jewellery, and 'incriminating evidence when put across to the persons involved, resulted in the admission of unaccounted income of about Rs 109 crore.'

The raids, which started on Thursday at 21 premises and five places relating to Kannada film industry by the Investigation Wing of the I-T Department, covered film production companies, film producers including Vijay Kiragandur, CR Manohar, Puneeth Rajkumar, and Rockline Venkatesh and actors Shiva Rajkumar, Yash, and Sudeep.

"The Department conducted discreet inquiries for more than three months before the search and identified the modus operandi and the key players," read a statement issued from the Income Tax Department on Sunday.

During the raids, evidence of unaccounted professional receipts by artists, cash investments in properties and jewellery through unaccounted income have been found.

"Evidence relating to suppression of income from sale of audio, digital and satellite rights, unaccounted cash receipts from distributors, and of expenses from undisclosed and unaccounted sources were also recovered during the raids," I-T Department further stated in the statement.

"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 statement said.

The I-T Department has requested the Kannada entertainment industry to maintain proper records of their revenue and taxes. "The Income Tax Department requests the entertainment industry in Karnataka to follow laid down accounting standards by recording all transactions in books of accounts and pay due taxes," said the I-T Dept in the statement.