Loss from owning maintaining Race horses

Some people purchase horses,feed,train and take care of them

When the horse becomes trained ,they contest in horse racing and win money (called stake) 

Suppose a person purchase horse for 100000, spends money on maintenance horses of 50000 and it earns 20000 prize money,then remaining 30000 is loss  from owning maintaining Race horses

Note:-

Income from only Legal horse racing covered

 and only revenue expenditure on horses covered not purchase price of horse

-ea- 

This loss can be adjusted same business of owning and maintaining race horses

(i.e. It cannot be adjusted against Normal Business )

If any loss remaining it can be carry forward against income from Owning and Maintaing Race horses

Carry forward allowed for 4 years maximum.

It is necessary that same business shall continue in future year

[ i.e.  Business of Race horses owning  & Maintaining shall  continue] .

Comparison

Question 1

Suppose a person spends following amount on a horse

It earned Rs 50000 Stake money for first time in AY 2016-17

Caompute INCOME FOR 2016-17