V. RAMASWAMI, J.

The assessee in this case is a firm of partnership consisting of nine partners, registered under s. 26-A of the IT Act. For the asst. yrs. 1958-59 and 1959-60 the firm was assessed by orders dt. 30th December, 1961 under s. 23(3) of the IT Act, 1922. The business loss was determined at Rs. 1, 37, 674/- and Rs. 1, 51, 221/- respectively. The ITO also computed that the assessee firm derived capital gains of Rs. 22, 865/- and Rs. 58, 360/- respectively. But, in the original assessment order, the ITO did not set off the business loss against the capital gains and did not strike the net figure of loss Consequently, in the individual assessments of the partners, the ITO allowed deduction for the gross business loss apportioned in the ratio in which they were entitled to share profit and loss and brought to tax the share of capital gains as allocated to them. On the ground that a mistake apparent on the face of record has crept in the original assessment orders in that the business loss of the assessee was not set off against the income under capital gains as required by the provisions of s. 24(1) of the IT Act, 1922, the ITO initiated proceedings in 1965 and i