The Statement of Profit & Loss of XY Ltd., for the year ended 31st March 2023 shows a net profit of ₹ 15,00,000. TheStatement of Profit & Loss includes the following items among others:1,00,000Dividend from an Indian Company23,000Net Rent from house property (let out to outsiders) after debiting repairs₹ 1,000 and municipal tax ₹ 3,00020,00,000Provision for taxation60,000Cost of maintenance of a liaison office in New York for promoting exports3,000Legal expenses for contesting a suit for eviction from a premises used asa showroom20,000Interest on loan15,000Amount embezzled by the cashier of the company, which is irrecoverableEntire amount of dividend income from another Indian Company has been distributed as dividend to its shareholders on10.9.2022.Compute the total income of the company for the relevant assessment year.

To compute the total income of the company for the relevant assessment year, we need to add and subtract certain items from the net profit as per the Income Tax Act. Here's how you can do it:

Step 1: Start with the net profit as per the profit and loss account. Net Profit: ₹ 15,00,000

Step 2: Add back the expenses which are not allowed as deductions under the Income Tax Act. Provision for taxation: ₹ 20,00,000 Cost of maintenance of a liaison office in New York: ₹ 60,000 Legal expenses for contesting a suit for eviction: ₹ 3,000 Amount embezzled by the cashier: ₹ 15,000 Total of these expenses: ₹ 20,78,000

Step 3: Add this total to the net profit. Total so far: ₹ 15,00,000 + ₹ 20,78,000 = ₹ 35,78,000

Step 4: Subtract the incomes which are not taxable or are taxed under other heads. Dividend from an Indian Company: ₹ 1,00,000 Net Rent from house property: ₹ 23,000 Total of these incomes: ₹ 1,23,000

Step 5: Subtract this total from the total so far. Total Income of the company: ₹ 35,78,000 - ₹ 1,23,000 = ₹ 34,55,000

So, the total income of the company for the relevant assessment year is ₹ 34,55,000.