KOCHI: The Income Tax Department has imposed a tax of Rs 3 crore (including fine) on the Syro- Malabar Church’s Ernakulam Angamaly Archdiocese for the Church’s land transactions near Bharata Matha College in Kochi in 2016. Income Tax Department imposed the tax based on the financial transactions that took place in the land deal between real estate dealer Saju Varghese Kunnel, Archdiocese procurator, Fr Josy Puthuva, and vicar general of Archdiocese, Mon Sebastian Vadakkumpadan, said sources.
The first installment of the Rs 55 lakh was paid by the Archdiocese on Sunday. In 2016, the Ernakulam- Angamaly Archdiocese had sold 63 cents of land, worth Rs 16 lakhs for a cent, near Bharata Matha College in Ernakulam, however, only Rs 6 lakh for a cent was reflected in the records as the cost of sale, said the sources. As per the sources, details of this dubious deal caught the attention of the IT Department in the documents seized from the office of Saju Varghese Kunnel during a raid conducted a few months ago. Ernakulam Angamaly Archdiocese procurator Fr Sebastian Manickathan said he is unaware of the total sum of money payable. “We do not know the correct amount of tax payable. We had already paid some money in advance to the Income Tax Department as tax,” said Fr Sebastian.
The Ernakulam Angamaly Archdiocese is registered as a charitable institution, and therefore we are exempted from Income Tax, under section 12A. However, the concerned dealers and priests along with Cardinal Mar George Alencherry, conducted these real estate deals under the banner of the Archdiocese. “We fear that the Archdiocese will lose its IT exemption benefits in the future,” said a senior priest belonging to the Archdiocese. “The Archdiocese has nothing to do with these shady dealings, or the subsequent Income Tax fine. Fr Joshy Puthuva, Mon Sebastian Vadakkumpadan and Cardinal Mar George Alencherry are responsible for the deals which were concluded without the knowledge or consent of the other priests in the Archdiocese.
This heavy new financial burden will worsen crisis within the Archdiocese,” said the priest. Last month, the Archdiocese had sold 11 acres of land to pay off its outstanding debts. Earlier, the Archdiocese had a debt of nearly Rs 95 crore, and was paying Rs 80 lakh per month as interest. With the sale of the land, it was able to settle a large part of the loan, by paying off Rs 75 crores.
Probe over
A top sleuth with the Income Tax (Investigation) unit in Kochi said the probe against the archdiocese was completed a week ago.