Rs 11-crore illegal assets seized in Karnataka tax raids
"As there are many issues on which evidence has been found but no admission made, the detection of concealed income will be a much higher figure," said the I-T department's investigation wing in a statement here.
The four sandalwood super stars are Shivaraj Kumar, his younger brother Punneth Kumar, Sudeep and Yash. The three film producers are Rockline Venkatesh, C.R. Manohar and B. Vijay Kiragandhur.
Super stars Shivaraj and Puneeth are the sons of Kannada matinee idol and thespian Rajkumar.
The searches were conducted under Section 132 of the Income-Tax Act, 1961, after warrants were issued to the actors and producers in advance.
The three-day search operation was carried out at 21 premises and surveys were conducted at 5 places by 180 officials from the department in the southern state and adjacent Goa.
In addition to the actors and producers, official and residential premises of film production companies and film financiers were also searched during the last three days.
Discreet inquiries made for over three months before the search identified the modus operandi and the key players.
"The searches led to evidences of suppression of income from film production, distribution and exhibition as well as evidence of unaccounted cash expenditure in films," said the statement, adding unaccounted theatre collections in cash and tax evasion on them was also found," said the statement.
Evidence of unaccounted professional receipts by artists, cash investments in properties and jewellery through unaccounted income was also found.
"The Income-Tax department appeals to the entertainment industry in Karnataka to follow prescribed accounting standards by recording all transactions in books of accounts and pay due taxes," said the statement.