Taara Limited has three Units – H, I and J. It transferred its Unit J to Joshi Limited by way of slump sale on 1st April, 2024. The Balance Sheet of…

Taara Limited has three Units – H, I and J. It transferred its Unit J to Joshi Limited by way of slump sale on 1st April, 2024. The Balance Sheet of Taara Limited as on that date is given below: Liabilities (₹ in lakhs) Assets (₹ in lakhs) Paid up capital 2,900 Fixed Assets: Reserve & Surplus 1280 Unit H 525 Unit I 475 Liabilities: Unit J 985 Unit H 160 Other Assets: Unit I 465 Unit H 920 Unit J 335 Unit I 1,550 Unit J 685 Total 5,140 Total 5,140 Additional information: (i) Lump sum consideration on transfer of Unit J is 1,340 lakhs. (ii) Fixed assets of Unit J include land which was purchased at 85 lakhs in February, 2023 and revalued at 150 lakhs as on March 31, 2024. The stamp duty value of land on 1st April, 2024 was 190 lakhs. (iii) Other fixed assets represent plant and machinery and furniture, which are reflected at 835 lakhs (i.e.,985 lakhs less value of land) which represents written down value of those assets as per books. The written down value of these assets u/s 43(6) of the Income-tax Act, 1961 is 725 lakhs. (iv) Other assets do not include jewellery, artistic work, shares and securities. (v) Liabilities represent ascertained liabilities and does not include provision for taxation or proposed dividend. (vi) Unit J was set up by Taara Limited in February 2023. (vii) Assume that the turnover of Taara Ltd. for F.Y. 2022-23 is 960 lakhs and Taara Ltd. has not opted for section 115BAA. (viii) Book profit of Taara Ltd. computed as per section 115JB is 320 lakhs From the information given above, choose the most appropriate answer to MCQ.1 to 4 below: