Udupi : Sri Vishwavallabha Tirtha swami of Sode Sri Vadiraja mutt expressed confidence that the chartered accountants will successfully handle the notice issued by income tax department to its dwandwa mutt – Shiroor mutt to the tune of Rs 17.34 crore. The demand notice pertains to assessment years 2011-12 to 2015-16. IT department officials have acknowledged that the notice is bad per law and will be settled as per due procedure, he said.

Explaining nitty-gritty of the case, Gautham H V, chartered accountant of Shiroor mutt told reporters here that the IT department erroneously issued the notice to seer of Sode Sri Vadiraja mutt, for he is the executor of Shiroor mutt. The ex-parte order has taken disparate sources of income other than the original income of Shiroor mutt to generate the notice and the department is slapping a penalty of 1% interest on it each month.

Subsequent representations to the principal commissioner, IT at Mangaluru has helped ease the situation for Shiroor mutt to a great extent. The IT department has agreed to release the bank accounts and other rental income that it had attached subsequent to issuing of notice. The department has agreed to keep in abeyance the need to pay 20% of the demand notice amount, or Rs 3.86 crore and granted stay on proceedings till appeal is disposed of.
With Shiroor mutt registering itself afresh under section 12AA of IT Act making it eligible for exemption given to charitable and religious institutions as per order of November 15, the mutt effective April 1, 2018 is not liable to be taxed on income earned from any of its properties. The mutt in the meanwhile will settle a demand notice for Rs 37 lakh for the years 2016-17 and 2017-18 under the Vivad Se Vishwas scheme, Gautham added.