( 1 ) IN this reference under Section 256 (2) of the I. T. Act, 1961, the following question has been referred to this court for its opinion :"whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that there was no mistake apparent from the record and as such the ITO was not justified in passing the order under Section 154 of the I. T. Act, 1961, and in that view cancelling the order under Section 154 of the said Act ?"

( 2 ) THE assessee is a company and the assessment year involved is 1973-74 for which the relevant accounting period ended on December 31, 1972.

( 3 ) THE assessee deals in tea and has business in share dealing. Besides these, the assessee has income from dividends. In the original assessment made on December 24, 1974, the ITO allowed the deduction as claimed by the assessee under Section 80m of the Act in respect of certain dividend income received by the assessee. Subsequently, the ITO was of the view that since the total income of the assessee was determined at a loss figure of Rs. 1,32,080 the assessee was not entitled to deduction under Section 80m of the I. T. Act, 1961, in respect of the dividend