See what happens is that all the trading activities be it in F&O, commodities, equity market are reported to Income-tax department. So one way or the other, they know that you have traded. But they don't know whether there is any taxable income or not.
Now, lets assume that there is a loss but then the audit becomes applicable if conditions under 44AB were satisfied. In such a case you are still liable for penalties for non-compliance with 44AB.
Now, lets assume that there is a loss but then the audit becomes applicable if conditions under 44AB were satisfied. In such a case you are still liable for penalties for non-compliance with 44AB.
Penalty for non-compliance http://relyonsoft.com/blogs/penalty-for-non-compliance-of-section-44ab/
Are there any other consequences?