TMI Blog1981 (3) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... tal income as they stood before setting off the losses under section 71 or section 72 of the Act ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the mistake, if any, in the allowance of relief under section 80M in the original assessment orders was not mistake apparent from the record that could be corrected under section 154 ? " So far as the first question is concerned in view of the ratio of the decision of this court in the case of National Engineering Industries Ltd. v. CIT [1978] 113 ITR 252 and the ratio of, the decision of the Supreme Court in the case of Cloth Traders (P.) Ltd. v. Addl. CIT [1979] 118 ITR 243, the question is answered in the negative and in favour of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee. (3) Where, in computing the total income of a firm, association of persons or body of individuals, any deduction is admissible under section 80G or section 80HH or section 80J or section 80JJ or section 80K or section 80QQ or section 80S or section 80T or section 80TT, no deduction under the same section shall be made in computing the total income of partner of the firm or, as the case may be, of a member of the association of persons or body of individuals in relation to the share of such partner in the income of the firm or the share of such member in the income of the association of persons or body of individuals." This position has been clarified by the Supreme Court in the case of Cambay Electric Supply Industrial Co. Ltd. v. CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rds, the correct figure of total income, which is otherwise taxable under other provisions of the Act, cannot be arrived at without working out the net result of computation under the head 'Profits and gains of business or profession'." The Calcutta High Court in the case of National Engineering Industries Ltd. v. CIT [1978] 113 ITR 252 at p. 255 also expressed the view to that effect. The Supreme Court in the case of Cloth Traders (P.) Ltd. v. Addl. CIT [1979] 118 ITR 243 at p. 259 observed as follows : " It is true that on this view the deduction in respect of the income by way of dividends from a company failing within clause (a) of sub-s. (1) of s. 80M, may exceed the quantum of such income included in the gross total income, but th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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