M/s Riddhi Ltd. is an Indian company engaged in providing consultancy and business advisory services. During the previous year 2025-26, it received…

M/s Riddhi Ltd. is an Indian company engaged in providing consultancy and business advisory services. During the previous year 2025-26, it received the following loans in cash from various vendors due to some business exigency: ₹3,00,000 availed from Mr. Arjun on 20.04.2025. 19,500 availed from Mr. Sunny on 20.05.2025. 20,500 availed from Mr. Prabhat on 20.06.2025 Further, the company made the following loan repayments during the year: 18,000 to Mr. Arjun on 15.07.2025 in crossed cheque. ₹ 1,25,000 to Mr. Arjun on 10.08.2025 through account payee cheque. ₹21,000 to Mr. Arjun on 08.10.2025 through RTGS. 3,000 to Mr. Arjun on 12.12.2025 through cash. M/s Riddhi Ltd. also furnished the following particulars for assessment year 2026-27: S. No. Particulars of total income Amount (₹) 1 As per the return of income furnished under section 139(1) (10,00,000) 2 Determined under section 143(1)(a) (5,00,000) 3 Assessed under section 143(3) (1,00,000) 4 Reassessed under section 147 5,00,000 The total turnover of Riddhi Ltd. for the P.Y. 2023-24 was ₹ 405 crores. Ignore the provisions of section 115BAA/115BAB. Mr. Arjun's total sales in business during the year ended 31.3.2025 was ₹ 1.50 crores. He has entered into a contract with Rajesh, a sole proprietor for construction of his residential house for ₹ 49,00,000 which was credited in his books of account on 1.2.2026. He also pays a monthly rent starting from 1st April, 2025 to 31st March, 2026 of ₹ 16,000 p.m. for the office premises to Mr. Hemant, the owner of building. Besides, he also pays service charges of ₹ 5,500 per month to Mr. Hemant towards the use of furniture, fixtures and vacant land appurtenant to office. The turnover of Mr. Arjun for previous year 2025-26 is ₹ 95 Lakhs.