10 January 2022
The assessee has 1 normal business(profit 7 lac) and other is trading in share (speculative loss 55000). His both business are subject to audit.I have filed audit report by combining both businesses profit and loss account and balance sheet. When I am filing ITR the profit of normal business is getting set off by speculative loss which is not allowed as per income tax act. Now I have separated business profit from speculative business in ITR. But now error showing that profit are not equal to profits shown in audit report.and you will get notice from department. My query is how to report speculative loss in ITR which is subject to audit-- 1. When I combine both business- profit get set off. 2. When I separate it ,it shows -difference in reported value in audit report and ITR. Please suggest how to solve the issue.
CAclubindia
