I-T Dept directs Archdiocese to remit ₹3.50 cr, citing ‘capital gains’
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Church sources said that they are not at all aware of any undisclosed money involved in the transactions
Close on the heels of the Income Tax Department directing the Ernakulam-Angamaly Archdiocese of Syro-Malabar Church to remit ₹3.50 crore, citing capital gains the archdiocese made in land transactions, the Church has submitted an appeal before the IT Appellate Authority, seeking a relook at the directive.
The assessment order dated July 6 sent by the department’s Central Circle, says the sales proceeds in cash while selling land (totalling ₹3.06 acres) owned by the archdiocese in four places were used for purchasing alternative land in two other places. The church land was sold citing the need to repay a ₹58 crore bank loan.
Detractors within the archdiocese have been saying that this loan was not repaid. They added that the church purchased land in two places, for which there is no document on the amount paid. They claimed the real land prices remained hidden and this amounted to I-T evasion.
“The I-T assessment is not yet over and no fine was imposed on the archdiocese. The July 6 tax directive was to remit tax on capital gain,” I-T department sources said.
Church sources said the I-T Department valued the lands and cited capital gains. “We are not at all aware of undisclosed money if any involved in the transactions.”
A senior priest in the archdiocese said the allegations are being stirred up by detractors within the church, in the run up to the Synod that is scheduled to be held on August 16. “They have been using such ‘pressure tactics’ for long. This issue could have been averted if I-T returns had been filed on time.”
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