Quiz for the week (27 Apr 2026) :
Mittal (P) Ltd was promoted by Arvind Reddy and Kamal Wahal, each having 50% equity shares in the company. The company is engaged in construction of residential apartments. The company has accumulated profits by way of free reserves of Rs.50 lakhs as on 1st April, 2025. Arvinda Reddy is a partner in a firm by name Rasiklal & Co with 25% share and another partner Chander Sen (a non-resident) with 75% share in the firm, which is engaged in supply of floor tiles. The company Mittal (P) Ltd paid Rs.10 lakhs as advance to Rasiklal & Co for supply of floor tiles in December, 2025 but supply was not made till 31st March, 2026. Arvinda Reddy was paid Rs.5 lakhs by Mittal (P) Ltd for meeting urgent medical expenditure of his family member in June, 2025 which was repaid by him to the company in February, 2026. What would be the tax impact of these transactions?
Share your thoughts on the above on or before 4th May 2026.