Law:

Section:

Section 80M, read with sections 71 and 72 of the Income-tax Act, 1961 - Deduction - Inter-corporate dividends - Assessment year 1968-69 - Whether deduction under section 80M should be calculated with reference to total income and gross total income as they stood before setting off losses under section 71 or section 72 - Held, no Section 154, read with sections 80M and 80A of the Income-tax Act, 1961 - Rectification of mistakes - Apparent from record -Assessment year - 1968-69 - Whether where, by misreading a section which is clear, a different view was taken and it was held that if a wrong view was taken and at least a wrong calculation was made then it would certainly come within purview of section 154 as a mistake apparent on face of record - Held, yes - Tribunal held that deduction under section 80M should be calculated before setting off losses - Whether in view of section 80A, there was mistake apparent from record and thus Tribunal's order was not justified - Held, yes FACTS The Tribunal held that the deduction under section 80M should be calculated with reference to the total income and gross total income as they stood before setting off the losses under section 71 or section 72. The Tribunal further held that the mistake, if any, in the allowance of relief under section 80M in the original assessment order was not a mistake apparent from the record that could be corrected under section 154. On reference : HELD In view of the decision of the same High Court in National Engg. Industries Ltd. v. CIT [1978] 113 ITR 252 and of the decision of the Supreme Court in the case of Cloth Traders (P.) Ltd. v. Addl. CIT [1979] 118 ITR 243 , the Tribunal was not correct in holding that the deduction under section 80M should be calculated with reference to the total income and gross total income as they stood before setting off the losses under section 71 or section 72. Where, by misreading a section which is clear, a different view was taken and it was held that if a wrong view was taken and at least a wrong calculation was made then it would certainly come within purview of section 154 as a mistake apparent on face of record. In view of the clear provisions of…

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