Income Tax Commissioner S.M. Murthy told: 'Searches were launched by income tax officials at Bharat Shah's residence and offices after it was learnt that he was not filing his tax returns.'
Murthy added that the officials were searching for Shah's income tax return papers and other tax related documents.
Shah, however, claimed that the IT department conducted no raids.
Shah has been in the midst of controversies since September 2003 when the special Maharashtra Control of Organized Crime Act (MCOCA) court convicted him for his links with the underworld.
It was alleged that Shah used money from the underworld to produce movies.