My brother entered SPECULATIVE LOSS i.e.-ve(Negative) Income Rs.197000 in P&L a/c section 51 i.e."No Accounts case". Firstly, the 51 (d) does not accept -negative Income unless the Gross Receipts,Gross Profit(I am not sure how this is possible) and Expenses are entered in a,b,c slots. Then this Negative Income Loss is reflected in Sch.BP in A item 1 and he had to again enter the Speculative Loss -(Minus) Rs.197000 in item 2a which doubles up as PROFIT in B-41 FOR +Rs.197000.and in SCH.CFL it shows Loss for CUR. YEAR. Other than Speculative business C/Fd. He has only some Salary Income.
Can anyone UNRAVEL this mystery of entering the -VE SPECULATIVE LOSS? The Brilliant ITO added to his woes by ADDING Rs.197,000 as his "INCOME" and levying Penal Tax Rs.18000/- I will attach the ITO's Order if reqd.
What is the CORRECT WAY of ENTERING SPECULATIV LOSS -VE in ITR 4 and in which section?
Thanks for your help
CAclubindia
