Mr. Jayesh, a resident individual aged 45 years, is a proprietor of M/s Jayesh Enterprises having 2 units viz. Unit A and Unit B. The total sales of…

Mr. Jayesh, a resident individual aged 45 years, is a proprietor of M/s Jayesh Enterprises having 2 units viz. Unit A and Unit B. The total sales of M/s Jayesh Enterprises for previous three financial years were 12 crores for 2025-26; 25 crores for 2024-25 and 22 crores for 2023-24. He transferred Unit A to M/s Rose Ltd. by way of slump sale on 12/01/2026, which was set up in October 2012. Mr. Jayesh paid professional fees and commission in connection with this transfer amounting to 20,000 and - 35,000 respectively to Mr. Naresh, a resident individual. The Balance Sheet of M/s Jayesh Enterprises as on that date is given below: Liabilities (₹ in lakhs) Assets (₹ in lakhs) Owner Capital 4,100 Land (at revalued figure (Unit A: 40%) 2,500 Accumulated balance in P & L Account 1,333.33 Plant & Machinery (at WDV) (Unit A: 40%) 2,500 Revaluation Reserve (created due to upward revaluation of land) 500 Sunday Debtors (Unit A: 25%) 600 Bank Loan (Unit A: 60%) 600 Closing Stock (Unit A: 40%) 833.33 Sundry Creditors (Unit A: 20%) 700 Other Assets (Unit A: 40%) 800 Total 7,233.33 Total 7,233.33 Other Information: Slump sale consideration on transfer of Unit A was - 1,600 lakhs. Fair market value of the Unit A on 12/01/26 was - 1,750 lakhs.Land was purchased on April 10, 2012 at 1,200 lakhs.No individual value of any asset is considered in the transfer deed.Other assets of Unit A include goodwill acquired and put to use on September 1, 2024 for 200 lakhs on which no depreciation has been charged. Remaining amount of other asset represents cash & bank balances. Based on the facts of the case scenario given above, choose the most appropriate answer to the following questions: (MCQ 1 to 3)