The Income Tax (I-T) department of the government of India has said that it has found that Balaji Telefilms has evaded taxes by not disclosing full income.

The IT department said that it found that the company had Rs. 30 crore worth undisclosed income during its searches on Balaji Telefilms, its sister concern Balaji Motion Pictures, Ekta Kapoor, her father Jeetendra, mother Shobha and brother Tusshar. IT officials began the search on Tuesday and continued till Thursday.

The officials said that the company was using fake bills showing inflated expenditure for hiding extra income. It was also found that the company showed inflated production expenditure in order to hide its actual income from operations. Showing higher expenditure reduced profits in accounting books and this helps in evading taxes.

The officials also found irregularities in purchase of properties by Balaji Telefilms. The officials have now said that they will send the report to the assessment wing of the IT department that will now determine actual tax liability along with the penalty for evading taxes. The officials also found Rs20 crore worth jewellery, which is claimed to be disclosed already and have now sealed four bank lockers during the search operation.