Mr. Kamal, aged 45 years, commenced operations of the business of a new three-star hotel in Delhi on 1.4.2023. He incurred capital expenditure of 50…

Mr. Kamal, aged 45 years, commenced operations of the business of a new three-star hotel in Delhi on 1.4.2023. He incurred capital expenditure of 50 lakhs on land in March, 2023 exclusively for the above business, and capitalized the same in his books of account as on 1st April, 2023. Further, during the P.Y. 2023-24, he incurred capital expenditure of 2 crores (out of which 50 lakhs was for acquisition of land and - 1.50 crore was for acquisition of building) exclusively for the above business. The payments in respect of the above expenditure were made by account payee cheque. The profits from the business of running this hotel (before claiming deduction under section 35AD) for the A.Y.2024-25 is 85 lakhs. He has employed 220 new employees during the P.Y.2023-24, the details of whom are as follows - No. of employees Date of employment Regular/Casual Total monthly emoluments per employee (₹) (i) 40 1.6.2023 Regular 24,000 (ii) 80 1.7.2023 Regular 24,500 (iii) 50 1.7.2023 Casual 25,500 (iv) 30 1.9.2023 Regular 25,000 (v) 20 1.12.2023 Casual 24,000 All regular employees participate in recognized provident fund and their emoluments are paid by account payee cheque. His gross revenue from the hotel is 11 crores. Mr. Kamal has opted out of the default tax regime under section 115BAC. Mr. Kamal also has another existing business of running a four-star hotel in Ahmedabad, which commenced operations twenty years back, the profits from which are 140 lakhs for the A.Y.2024-25 Based on the facts of the case scenario given above, choose the most appropriate answer to the following questions: