The statement of the profit and loss of AB Ltd., (a domestic company) which is engaged in the business of Manufacturing, shows a Net Profit of 52…

The statement of the profit and loss of AB Ltd., (a domestic company) which is engaged in the business of Manufacturing, shows a Net Profit of 52 lakhs for the financial year ended 31st March 2026. The following debits and credits needs to be considered for computing total income of AB Ltd. for AY 26-27: (a) Professional fees amounting to 2 lakhs debited in profit and loss account for FY 24-25 but was paid on 30th July 2025 in cash has not been debited or credited in the profit and loss account for FY 25-26. (b) The interest amounting 8 lakhs payable to non-banking financial companies notified for the purpose of Section 43B has been debited in P&L for FY 25-26 even though the same is proposed to be paid after due date of filing return for the AY 26-27. (c) ₹ 3.5 lakhs received as interest on margin money deposited with bank for obtaining bank guarantee to carry on business was credited in profit and loss account for FY 25-26. (d) Loss of 2,60,000 incurred by way of trading in Futures and Options (Derivatives) in BSE during the FY 25-26 and accordingly debited to P&L for FY 25-26. (e) Legal fees incurred in defending Title of factory premises of the company - 3,70,000 debited in P&L of FY 25-26. The same was incurred and paid during the said FY after deducting TDS as applicable and the TDS was also deposited in the said FY. (f) Development charges of 95,000 paid to Government on industrial land purchased in the FY 25-26 and accordingly, debited to the P&L account relevant to the AY 26-27. (g) ₹ 3,20,000 paid to the Indian Institute of Science, Bangalore notified for scientific research in term of Section 35(1)(ii) during the FY and accordingly, debited to P&L Account for the FY 25-26. (h) A Machine which was in use since 5 years having WDV amounting - 1.80 lakhs as on 1st April 2025 was discarded on 1st Sep. 2025 for 10,000. The WDV of the Machine amounting - 1.80 lakhs was reduced from its block of assets of 15% (Block still exits) and - 1.70 lakhs was debited to P&L as loss on sale of Machinery. Additional Information for which no adjustments has been made in the books of accounts: 1. The Company has received Excise Duty Drawback under the Customs and Central Excise Duty Drawback Rules, 1971 amounting to 6.5 lakhs during the FY 25-26 against exports made during the earlier financial years. 2. Computer Printer amounting - 90,000 was purchased on 1st Sep. 2025 and put to use on the same day. Compute Total Income of AB Ltd. for the AY 26-27 under the regular provisions of the Income-tax Act, with necessary explanations assuming that the AB Ltd. has not opted for any concessional tax under special provisions of the Income-tax Act, 1961. Total turnover of AB Ltd. for the FY 23-24 was 290 crores and during the FY 24-25 was 410 crores. Ignore the provision of MAT. Would it be beneficial for AB Ltd. to opt for beneficial tax rates under Section 115BAA for FY 25-26. Support your view with necessary calculations.