Dipak Kumar Sen, J. - (1.) General Beopar Co. (P.) Ltd., the assessee, is a private limited company. Some time in 1968, M/s Dabri Investment Private Ltd., another private limited company, was amalgamated with the assessee whereupon all assets and liabilities of the latter devolved on the assessee. M/s Dabri Investment Pvt. Ltd. had prior to its amalgamation taken on lease a property which had been let out under a sublease. Subsequent to the amalgamation, the rent from the sub-lease of the said property came to be assessed in the hands of the assessee.
(2.) The assessee was assessed to income-tax in the assessment year 1973-74, the accounting year ending on June 30, 1972. In the said year, the total income of the assessee was assessed at Rs. 1,84,399 of which Rs. 50,083 was found to have arisen from the business of the assessee. The rent from the sub-lease of the said property which was accruing in the hands of the assessee was calculated at Rs. 94,808 and income from dividend was calculated to be Rs. 34,508 aggregating to Rs. 1,34,316. Business losses suffered by the assessee in the earlier assessment years 1969-70 and 1970-71 were carried forward to the said assessment year for set off against the total income of the assessee, in the year involved, and the taxable income after such set off was computed as nil.
(3.) The assessee preferred an appeal against this assessment before the Appellate Assistant Commissioner. It was contended that the Income-tax Officer had disallowed deduction under Section 80M of the Income-tax Act, 1961, in respect of the dividend earned by the assessee. The Appellate Assistant Commissioner accepted the contention of the assessee and by his order dated May 26, 1975, directed the Income-tax Officer to allow deduction under Section 80M as claimed. It was also pointed out to the Appellate Assistant Commissioner that in computing the income arising from dividend and house rent, the Income-tax Officer had made a typographical mistake and had arrived at a total of Rs. 1,34,316 whereas the correct figure would be Rs. 1,29,316. The Appellate Assistant Commissioner further directed the Income-tax Officer to rectify this typographical mistake in the assessment and give relief to the assessee accordingly.;