Mr. Krishan, a resident Indian, is engaged in retail business in Delhi. The turnover of his business for FY 24-25 was - 9.90 crores. The aggregate…

Mr. Krishan, a resident Indian, is engaged in retail business in Delhi. The turnover of his business for FY 24-25 was - 9.90 crores. The aggregate payments made by Mr. Krishan to Mr. Anil (a resident wholesaler in Delhi) during the FY 25-26 towards consideration for purchase of goods were 90 lakhs (20 lakhs on 5th June 2025,25 lakhs on 27th Sep. 2025,20 lakhs on 20th Nov. 2025 and 25 lakhs on 15th Feb. 2026). The business turnover of Mr. Anil for FY 24-25 was - 10.10 crores. Mr. Anil paid 6 lakhs on 5th Sep. 2025 to Mr. Albert (a seller of overseas tour program package) for booking one week overseas holiday tour package to Singapore. Mr. Anil for his daughter's MBA education in USA State University, USA remitted 13 lakhs on 10th Feb. 2026, out of his personal savings, through Bank of India, Laxmi Nagar branch, Delhi. The Bank of India is an authorised foreign exchange dealer, under LRS and a financial institution for the purpose of Section 80E of the Income-tax Act. Mr. Anil also took an education loan of 18 lakhs on 15th Feb. 2026 from State Bank of India, Shakarpur Branch, Delhi for his son's two-year Master of Public Administration program in Lynn University, USA. The loan amount was directly remitted by State Bank of India, Shakarpur Branch in the bank account of Lynn University, USA maintained with a foreign bank in USA. The remittance was made under Liberalised Remittance Scheme of RBI (LRS). Mr. Anil during the FY 25-26 also remitted - 6.5 lakhs on 21st March 2026, out of his personal savings, under LRS through Bank of India, Laxmi Nagar Branch, Delhi as gift to his sister residing in London in her bank account located in London. The amount was gifted by Mr. Anil on the occasion of 52nd birthday of his sister. Mr. Anil has furnished undertakings containing the details in respect of earlier foreign remittances made during FY 25-26 through Bank of India, Laxmi Nagar Branch at the time of requesting for making remittance to his sister's account. The Income-tax department has received information from foreign Jurisdiction in respect of the investment in the shares of a foreign company made in the FY 24-25 and the dividend credited in foreign bank account of Mr. Albert in the said financial year. The said investment in the shares of the foreign company and dividend income have not been disclosed by Mr. Albert in his return of income for AY 25-26. From the facts given above, choose the most appropriate answer to the following Multiple-Choice Questions (MCQs No 1 to 5): -