Torrent Pharmaceuticals Ltd., Ahmedabad V. The ACIT., Circle-8, Ahmedabad

ITA 1420/AHD/2006

• Counselvise Citation: [2009] 114 COUNSELVISE.COM (IT) 8983 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 3 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-09-2009
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 09-07-2009
• Assessment Year: 1995-1996
• Appeal Filed On: 31-05-2006
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K SHRIDHA
• Assessee Lawyers: P M MEHTA; S N SOPARKAR
• Keywords: Depreciation; Rectification of order; Scheme of amalgamation
• Section: 143(3); 244A; 250; 264; 139(1); 263; 144; 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH A AHMEDABAD BEFORE SHRI MAHAVIR SINGH, JUDICIAL MEMBER, AND SHRI D. C. AGRAWAL, ACCOUNTANT MEMBER ITA NO.1420/AHD/2006 ASSESSMENT YEAR:1995-96 DATE OF HEARING:9.7.09 DRAFTED:10.7.09 TORRENT PHARMACEUTICALS LTD. NR. DINESH HALL, ASHRAM ROAD, AHMEDABAD PAN NO. AACT5456A V/S . ACIT, CIRCLE-8, AHMEDABAD (APPELLANT) .. (RESPONDENT) APPELLANT BY :- SHRI S.N.SOPARKAR, & SHRI P.M. MEHTA AR RESPONDENT BY:- SHRI K. SHRIDHA, SR DR O R D E R PER MAHAVIR SINGH, JUDICIAL MEMBER:- THIS APPEAL BY THE ASSESSEE IS ARISING OUT OF THE ORDER OF COMMISSIONER OF INCOME-TAX (APPEALS)-XVI, AHMEDABAD IN APPEAL NO. C IT(A)-XVI/ACIT C.8/160/2005-06 DATED 02-03-2006. THE ASSESSMENT W AS FRAMED BY THE ASSTT. COMMISSIONER OF INCOME-TAX, CIRCLE-8, AHMEDABAD U/S . 143(3) R.W.S. 147 OF THE INCOME-TAX ACT, 1961 (HEREINAFTER REFERRED TO AS T HE ACT) VIDE HIS ORDER DATED 31-03- 2003 FOR THE ASSESSMENT YEAR 1995-96. THE RECTIFIC ATION ORDER UNDER DISPUTE WAS PASSED BY THE ACIT, CIRCLE-VIII, AHMEDABAD U/S.154 R.W.S. 244A OF THE ACT VIDE ORDER DATED 02-09-2005. 2. THE ONLY ISSUE IN THIS APPEAL OF THE ASSESSEE IS AS REGARDS TO FOR WHICH PERIOD, THE ASSESSEE IS ENTITLED FOR INTEREST U/S.2 44A OF THE ACT. FOR THIS, THE ASSESSEE HAS RAISED THE FOLLOWING FOUR EFFECTIVE GR OUNDS:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE THE CIT(A) HAS ERRED IN UPHOLDING THE REJECTION OF ASSESSEES RECTIFICATION APPLICATION BY THE ASSESSING OFFICER. ITA NO.14201/AHD/2006 A.Y.1995 -96 TORRENT PHARMACEUTICALS LTD. V. ACIT, CIR-8, ABD PAGE 2 2.ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE CIT(A) SHOULD HAVE UPHELD THE ASSESSEES CONTENTION THAT THE AOS ACTI ON OF NOT COMPUTING INTEREST U/S.244A FOR THE PERIOD FROM 1.4.1995 WAS A MISTAKE APPARENT FROM RECORD AND WAS REQUIRED TO BE RECTIFIED. 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E THE CIT(A) SHOULD HAVE UPHELD THE ASSESSEES CONTENTION THAT THE ASSESSEE WAS ENTITLED TO THE INTEREST U/S.244A FOR THE PERIOD STARTING FROM 1.4. 1995 AND DEPARTMENTS FAILURE TO DO SO CONSTITUTED A MISTAKE APPARENT FRO M RECORD. 4. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, AMEND AND / OR WITHDRAW AN GROUND OR GROUNDS OF APPEAL EITHER BEFORE OR DURING THE COURSE OF HEARING OF THE APPEAL. 3. THE BRIEF FACTS LEADING TO THE ABOVE ISSUE ARE, THAT ORIGINAL RETURN OF INCOME WAS FILED BY THE ASSESSEE ON 30-11-1995, DECLARED T OTAL INCOME AT RS.12,40,87,172/- AND THIS RETURN WAS PROCESSED U/S.143(1) OF THE ACT ON 12-12-1995, MAKING AN ADJUSTMENT OF RS.15,640/-. THE REFUND WAS DETERMINE D WHILE PROCESSING THIS RETURN AT RS.1,49,48,564/- INCLUDING INTEREST U/S.244A OF THE ACT AMOUNTING TO RS.12,34,285/-. THE ASSESSMENT WAS FRAMED U/S.143(3 ) OF THE ACT VIDE ORDER DATED 30-03-1998 DETERMINING A TOTAL INCOME AT RS.31,70,4 8,620/-. THE ASSESSEE PREFERRED APPEAL AGAINST THE ASSESSMENT ORDER BEFORE THE CIT( A), WHO ALLOWED THE CLAIM OF THE ASSESSEE VIDE ORDER DATED 15-03-1999 AND THEREAFTER IN VIEW OF THE APPEAL EFF ECT ORDER DATED 31-03-1999 , THE REVISED TOTAL INCOME WAS DETERMINED AT RS.18,67,85,000/-. SUBSEQUENTLY, THE ASSESSMENT WAS REOPENED U/S.147 OF THE ACT AND WAS COMPLETED VIDE ORDER DATED 31-03-2003, DETERMINING TOTAL INCOME AT RS.8,65,06,398/-. AGGRIEVED AGAINST THE ACTION OF THE AO, THE ASSESSEE PREFERRED APPEAL BEFORE CIT(A), WHO QUASHED THE RE-ASSESSMENT PROCEEDINGS VIDE ORDER DATED 21-05-2003. THE APPEAL EFFECT WAS GIVEN TO THE ORD ER OF CIT(A) VIDE DATED 30- 06-2003,DETERMINING THE TOTAL INCOME AT RS.6,63,81, 572/- AFTER ALLOWING SET OFF OF CARRY FORWARD LOSS OF INDIA INFUSION LTD. A COMPANY AMALGAMATED WITH THE ASSESSEE- COMPANY U/S.72A OF THE ACT ON ACCOUNT OF SET OFF OF BROUGHT FORWARD LOSSES OF INDIAN INFUSION LTD. ACCORDINGLY, THE ASSESSEE BECAME ENTI TLED FOR THE REFUND. ON THIS REFUND, NO INTEREST U/S.244A WAS ALLOWED IN THE APP EAL EFFECT ORDER DATED 30-06- 2003. THE ASSESSEE MOVED RECTIFICATION APPLICATION U/S.154 OF THE ACT BEFORE THE ASSESSING OFFICER VIDE DATED 08-06-2005 STATING THA T THE INTEREST U/S.244A OF THE ACT GRANTED TO THE ASSESSEE-COMPANY WAS SHORT BY RS.2,1 6,10,611/- AND WITH THIS APPLICATION THE WORKING OF INTEREST WAS ENCLOSED. ON BEHALF OF THE ASSESSEE IT WAS ITA NO.14201/AHD/2006 A.Y.1995 -96 TORRENT PHARMACEUTICALS LTD. V. ACIT, CIR-8, ABD PAGE 3 CONTENDED BEFORE THE AO THAT ONCE THE AMALGAMATION PROCESS HAS BEEN APPROVED BY THE HIGH COURT W.E.F. 01-04-1994 WHEREIN THE CON SENT OF THE SPECIFIED AUTHORITY HAS BEEN DULY CONSIDERED AND SUBSEQUENT TO THE AMAL GAMATION ORDER PASSED BY THE HIGH COURT AND THE QUESTION OF CARRY FORWARD HAS BE EN APPROVED BY THE SPECIFIED AUTHORITY, FOR ALL PURPOSE THE CRUCIAL DATE FOR CO NSIDERATION OF SET OFF OF LOSS HAS TO BE RECKONED AS 1-4-1994. THE ASSESSEE FURTHER CON TENDED THAT ONCE THE LOSS IS SET OFF FOR THE A.Y. 1995-96 THE ASSESSEE GETS ENTITLED TO THE REFUND WITH INTEREST U/S.244A FOR THE ASSESSMENT YEAR UNDER CONSIDERATIO N W.E.F. 1-4-95. 4. THE ASSESSING OFFICER AFTER CONSIDERING THE SUBM ISSIONS REJECTED THE CLAIM OF THE ASSESSEE BY GIVING FOLLOWING FINDING IN PARA-5 TO 7:- 5. I HAVE CONSIDERED THE SUBMISSIONS OF THE ASSESS EE AND PERUSED THE RECORDS. THE SCHEME OF AMALGAMATION WAS APPROVED BY THE HIGH COURT OF GUJARAT IN COMPANY PETITION NO.17 OF 1995 BY ORDER DATED 07/05/1997. THE CERTIFICATE U/S.72A(2)(II) ISSUED BY THE SPECIFIED AUTHORITY, NAMELY, MINISTRY OF COMMERCE AND INDUSTRY (DEPARTMENT OF INDUSTRIAL POL ICY & PROMOTION), NEW DELHI IS REPRODUCED AS UNDER : CERTIFICATE UNDER SECTION 72A(2)(II) OF THE INCOME -TAX ACT,1961. THE CENTRAL GOVERNMENT ON THE RECOMMENDATION OF T HE SPECIFIED AUTHORITY HAVE MADE A DECLARATION NO.9-S A/98-A&PAC-I DATED 19 TH JULY, 2001 TO THE EFFECT THAT CONDITIONS LAID DO WN IN SECTION 72A(1) HAVE BEEN FULFILLED IN RESPECT OF THE AMAL GAMATION OF M/S. INDIA INFUSION LTD. WITH M/S. TORRENT PHARMACEUTIC ALS LTD. 2. IN TERMS OF SECTION 72A(2)II) OF THE INCOME-TAX ACT, 1961, THE SPECIFIED AUTHORITY HEREBY CERTIFIES THAT M/S. TORR ENT PHARMACEUTICALS LTD., HAS, SUBSEQUENT TO THE AMALGAMATION, TAKEN A DEQUATE STEPS FOR REHABILITATION / REVIVAL OF THE BUSINESS OF M/S. I NDIA INFUSION LTD. FOR THE ACCOUNTING YEAR 1995 TO 1998. 3. THIS CERTIFICATE ISSUES IN TERMS OF SECTION 72A( 2)(II) OF THE INCOME-TAX ACT, 1961. BY ORDER SD/- (T.C. JAMES) DEPUTY SECRETARY OF THE GOVT. OF INDIA PLACE NEW DELHI DATED THE 2YTH MAY, 2002. ITA NO.14201/AHD/2006 A.Y.1995 -96 TORRENT PHARMACEUTICALS LTD. V. ACIT, CIR-8, ABD PAGE 4 6. IT WILL THUS BE SEEN THAT THE CERTIFICATE U/S.72 A(2)(II) OF THE ACT WAS ISSUED TO THE ASSESSEE ONLY ON 27/5/2002. THE SAID CERTIFICATE WAS PRODUCED BY THE ASSESSEE ON 07/06/2002 IN THIS OFFICE VIDE L ETTER DATED 1/06/2002. THE SET OFF OF THE LOSS DEPENDED ON THE CERTIFICATE OF THE SPECIFIED AUTHORITY COMING UNDER THE MINISTRY OF COMMERCE & INDUSTRY. T HE CONTENTION OF THE ASSESSEE THAT IT IS ENTITLED FOR INTEREST U/S.244A OF THE ACT W.E.F. 1.4.1995 CANNOT BE ACCEPTED. THE DELAY IN OBTAINING THE CERT IFICATE HAS TO BE HELD TO BE ATTRIBUTABLE TO THE ASSESSEE IN TERMS OF SUB-SEC. ( 2) OF SEC.244A OF THE ACT. 7. IN VIEW OF THE ABOVE I HOLD THAT THERE IS A M ISTAKE IN NOT GRANTING REFUND TO THE ASSESSEE WHILE GIVING EFFECT TO TH E APPELLATE ORDER DATED 30/6/2003. THE SAME IS THEREFORE, RECTIFIED U/S.154 OF THE ACT. GRANT INTEREST U/S.244A OF THE ACT FOR THE PERIOD FROM 07/06/2002 TO 30/6/2003. 5. AGGRIEVED AGAINST THE ACTION OF THE AO, ASSESSEE PREFERRED APPEAL BEFORE CIT(A). THE CIT(A) ALSO CONFIRMED THE ACTION OF THE ASSESSING OFFICER BY STATING THE REASON THAT THE APPEAL IS NOT MAINTAINABLE AS THE A SSESSEES CASE FALLS UNDER SUB- SECTION 2 OF SECTION 244A(2) AND NOT SUB-SECTION 3. THE FINDINGS OF CIT(A) IN PARA-2 OF HIS APPELLATE ORDER ARE AS UNDER:- 2. THE ONLY GROUND OF APPEAL IS REGARDING CALCULAT ION OF INTEREST U/S.244A OF THE ACT. THE APPEAL HAS BEEN FILED AGAINST THE O RDER PASSED U/S.244 R.W.S. 154 OF THE ACT ON 02-09-2005. THE ORIGINAL RETURN W AS FILED ON 30-11-95 DECLARING TOTAL INCOME OF RS.12,40,87,172/-. THE AS ST. WAS MADE ON 30-03-98 AT A TOTAL INCOME OF RS.31,70,48,620/- AND AFTER GIVING EFFECT TO THE ORDER OF CIT(A), TOTAL INCOME WAS DETERMINED AT RS.18,67,85 ,000/-. LATER ON, THE CASE WAS REOPENED U/S.147 AND REOPENED ASSESSMENT W AS MADE ON 31-03- 2003 DETERMINING TOTAL INCOME AT RS.8,65,06,398/-. ON GIVING EFFECT TO THE CIT(A)S ORDER, THE TOTAL INCOME WAS FINALLY COM PUTED AT RS.6,63,81,512/- VIDE ORDER DT: 30-06-2003. IN THIS APPEAL EFFECT, THE ASSESSEE WAS ALLOWED SET OFF OF CARRIED FORWARD LOSS OF INDIA INFUSION LTD., A COMPANY AMALGAMATED WITH THE ASSESSEE. WHILE GIVING EFFECT AND WORKING OUT T HE INTEREST U/S.244A, THE INTEREST WAS GIVEN ONLY FOR THE PERIOD FROM 07-06-0 2 TO 30-06-03 AND THE INTEREST IS NOT GIVEN FOR THE EARLIER PERIOD FOR TH E REASON THAT THE DELAY WAS ATTRIBUTABLE TO THE APPELLANT, AS THE APPELLANT DID NOT FILE THE CERTIFICATE FROM THE SPECIFIED AUTHORITY FOR AMALGAMATION AND SET OF F OF LOSS. FURTHER, AT THE END OF THE ORDER, THE A.O. HAS REMARKED THAT IF ANY DISPUTE ARISES AGAINST THIS ORDER, THE ASSESSEE MAY APPROACH TO THE CCIT/CIT-IV , ABAD. THE APPELLANT HAS FILED APPEAL AGAINST THIS ORDER BEFORE THE UNDE RSIGNED, WHICH IS NOT MAINTAINABLE. AS PER SEC.(2) TO SEC. 244A, IF THE A .O. HAS NOT GIVEN INTEREST U/S.244A FOR A PERIOD WHICH IS EXCLUDED FOR THE RE ASON THAT THE DELAY IS ATTRIBUTABLE TO THE ASSESSEE, THE MATTER WILL BE DECIDED BY THE CIT/CCIT. HENCE, THE JURISDICTION OF THIS APPEAL DOES NOT RES T WITH THE CIT(APPEALS). THE APPELLANT HAS ULTIMATELY APPLIED TO THE COMMISSIONE R OF INCOME-TAX-IV, AHMEDABAD IN RESPECT OF THIS DISPUTE VIDE ITS PETIT ION DT: FEBRUARY 7, 2006, AS PER PROVISIONS OF SEC.244A OF THE ACT. IN VIEW OF T HIS, THE APPEAL IS DISMISSED ON THE BASIS THAT IT IS NOT MAINTAINABLE. ITA NO.14201/AHD/2006 A.Y.1995 -96 TORRENT PHARMACEUTICALS LTD. V. ACIT, CIR-8, ABD PAGE 5 AGGRIEVED, THE ASSESSEE-COMPANY CAME IN SECOND APPE AL BEFORE US. 6. BEFORE US ON BEHALF OF THE ASSESSEE-COMPANY, THE LD. COUNSEL, SHRI S.N. SOPARKAR AND SHRI P.M.MEHTA MADE ARGUMENTS. SHRI SO PARKAR ARGUED THAT QUANTUM OF INTEREST U/S.244A WAS REQUIRED TO BE MODIFIED IN PURSUANCE OF SUB-SECTION (3) OF SECTION 244A AS THE REVENUE HAS ERRED IN INVOKING T HE PROVISIONS OF SUB-SECTION (2) OF SECTION 244A TO THIS CASE. HE ARGUED THAT IT IS A SIMPLE CASE IN WHICH INTEREST U/S.244A WAS GRANTED W.E.F. 1.4.1995, EVEN AT THE TIME OF PROCESSING OF RETURN U/S.143(1) AS THAT RETURN WAS FILED WITHIN THE TIM E ALLOWED I.E. ON 30.11.1995. THEREAFTER HE STATED THAT AN AMOUNT ON WHICH SUCH R EFUND WAS DUE STOOD MODIFIED AND HENCE IN PURSUANCE OF SUB-SECTION (3) OF SECTIO N 244A INTEREST WAS ALSO REQUIRED TO BE APPROPRIATELY RECOMPUTED. HE FURTHER STATED T HAT SUB-SECTION (2) OF SECTION 244A IS NOT AT ALL APPLICABLE TO THIS CASE, FIRST LY BECAUSE THE ORIGINAL RETURN WAS FILED WITHIN TIME ALLOWED U/S 139(1) OF THE ACT AND INTEREST U/S.244A WAS GRANTED EVEN AT THE INITIAL STAGE OF PROCESSING U/S.143(1) RIGHT FROM 1.4.1995 AS IS OBVIOUS FROM THE FIGURE OF REFUND CLAIMED AND ALLOWED ON A SUM OF RS.1,37,22,914, THE INTEREST U/S.244A GRANTED IN INTIMATION U/S.143(1 )(A) DATED 6-2-1996 WAS RS.12,34,285, WHICH RESULTED IN GRANT OF TOTAL REF UND OF RS.1,49,48,565. HE FURTHER STATED THAT SUB-SECTION (2) OF SECTION 244A IS OR DINARILY APPLICABLE TO THE CASES OF DELAY IN FILING OF RETURN OR DELAY ATTRIBUTABLE T O THE ASSESSEE IN THE COURSE OF PROCESSING OF ASSESSMENT PROCEEDINGS ETC. THE LD. C OUNSEL FOR THE ASSESSEE WITHOUT PREJUDICE TO THE ABOVE ARGUMENTS, SUBMITTED THAT THE DELAY, IF ANY, IN ISSUANCE OF CERTIFICATE BY THE SPECIFIED AUTHORITY U/S.72A WAS NOT AT ALL ATTRIBUTABLE TO THE ASSESSEE INSOFAR AS : (I) THE ASSESSEE HAD APPROACHED THE HONBLE GUJARA T HIGH COURT AS EARLY AS IN 1994-95 FOR SEEKING THE APPROVAL FOR AMALGAMATION AS IS OBVIOUS FROM THE HEADING GIVEN TO THE COMPANY PETITION AS CO. PETITION NO.18/1995 CONNECTED WITH CO. APPLICATION NO.330/1994, IN T HE HONBLE GUJARAT HIGH COURT ORDER APPROVING AMALGAMATION ON 7.5.1997 W.E.F. 1.4.1994. (II) THE ASSESSEE HAD APPROACHED THE MINISTRY OF INDUSTRIES, GOVERNMENT OF INDIA VIDE ITS APPLICATION DATED 9.8.1995 FOR S EEKING APPROVAL FOR AMALGAMATION U/S.73A(3) VIDE SUBJECT AS MENTIONED IN THE MINISTRYS LETTER DATED 26.3.1997, AND THE MINISTRY OF INDUSTRIES HA D, IN PRINCIPLE, AGREED TO ACCORD THE APPROVAL ALSO. ITA NO.14201/AHD/2006 A.Y.1995 -96 TORRENT PHARMACEUTICALS LTD. V. ACIT, CIR-8, ABD PAGE 6 (III) THE ASSESSING OFFICER IN ORDER U/S.154 DATED 24.12.1998, HAD ACTUALLY GRANTED THE SET OFF OF LOSSES OF THE AMALGAMATIN G COMPANY. THE SET OFF GRANTED WAS IN RESPECT OF LOSS OF INDIA INFUSION LT D. RELATING AY 1995-96. IN VIEW OF THESE ARGUMENTS, THE LD. COUNSEL FOR THE ASSESSEE STATED THAT THE REVENUE IS NOT JUSTIFIED IN TREATING THE DELAY IN F URNISHING OF CERTIFICATE U/S.72A(3) AS ATTRIBUTABLE TO THE ASSESSEE. THE LD. COUNSEL FURTH ER ARGUED THAT WITHOUT PREJUDICE TO THE ASSESSEES MAIN CONTENTION, THAT THE ASPECT OF DELAY AS ENVISAGED IN SUB-SECTION (2) OF SECTION 244A IS NOT AT ALL RELEVANT IN THI S CASE. ACCORDING TO HIM, THE CIT(A) SHOULD HAVE REALIZED THAT ASSESSEES APPLICATION TO THE CIT FOR SEEKING DIRECTION TO THE ASSESSING OFFICER FOR COMPUTING INTEREST WITH EFFECT FROM 1.4.1995 WAS OBVIOUSLY WITHOUT PREJUDICE TO THE ASSESSEES MAIN CONTENTION THAT THE ASSESSEES CASE WAS COVERED BY SUB-SECTION (3) AND NOT SUB-SE CTION (2) OF SECTION 244A AND HE SHOULD HAVE REALIZED THAT MERELY MAKING APPLICATION TO THE CIT DOES NOT MEAN THAT ASSESSEE IS GIVING UP HIS CLAIM FOR INVOKING SUB- SECTION (3) OF SECTION 244A FOR SEEKING MODIFICATION OF THE QUANTUM OF INTEREST U/S .244A, CONSEQUENT UPON THE MODIFICATION OF THE AMOUNT ON WHICH SUCH INTEREST H AS BEEN INCREASED. 7. ON THE OTHER HAND, THE LD. CIT DR, SHRI K. SRIDH AR ARGUED ON BEHALF OF THE REVENUE AND STATED THAT THIS IS A CASE OF SUB-SECTI ON 2 OF SECTION 244A OF THE ACT AND NOT OF SUB-SECTION 3. ACCORDING TO HIM, THE CI T(A) HAS RIGHTLY HELD THAT THIS APPEAL IS NOT MAINTAINABLE AND EVEN OTHERWISE THE A SSESSEE PREFERRED AN APPLICATION BEFORE CIT UNDER SUB-SECTION 2 OF SECTION 244A OF T HE ACT ADMITTEDLY. ACCORDING TO HIM, THIS APPEAL OF THE ASSESSEE-COMPANY IS NOT MAI NTAINABLE AT ALL. FURTHER, IN CASE THIS APPEAL IS ADMITTED, ACCORDING TO HIM, THE INTE REST SHOULD HAVE BEEN ALLOWED ONLY FOR THE PERIOD 07-06-2002 TO 30-06-2003, AS HAS RIG HTLY BEEN ALLOWED BY THE AO, ACTING UNDER PROVISIONS OF SECTION 154 OF THE ACT. ACCORDINGLY, HE URGED THE BENCH TO CONFIRM THE ORDER OF CIT(A). 8. WE HAVE HEARD THE RIVAL CONTENTIONS AND GONE THR OUGH THE FACTS AND CIRCUMSTANCES OF THE CASE. WE HAVE ALSO PERUSED TH E CASE RECORDS. THE BRIEF FACTS RELATING TO THIS ISSUE ARE THAT THE EXISTENCE OF MI STAKE APPARENT FROM RECORD HAS BEEN ADMITTED WHILE PASSING THE ORDER U/S.154 FOR GRANTI NG PARTIAL INTEREST U/S.244A. THE AO NOTED THAT ON THE BASIS OF RETURN FILED ON 30.11 .1995 PROCESSING WAS DONE U/S.143(1) AND REFUND WAS DETERMINED AT RS.1,49,48, 564 WHICH INCLUDED INTEREST ITA NO.14201/AHD/2006 A.Y.1995 -96 TORRENT PHARMACEUTICALS LTD. V. ACIT, CIR-8, ABD PAGE 7 U/S.244A OF RS.12,34,285. THUS, ASSESSEES CLAIM FO R INTEREST U/S.244A WAS ADMITTED BY THE DEPARTMENT IN INTIMATION U/S.143(1) DATED 12 .12.1995 GIVEN ON THE BASIS OF RETURN FILED ON 30.11.1995. WE FIND THAT THE ASSESS MENT PROCEEDINGS WENT THROUGH VARIOUS STAGES AND VICISSITUDES AND ULTIMATELY EFFE CT TO THE CIT(A)S ORDER DATED 21.5.2003 WAS GIVEN ON 30.6.2003 VIDE PARA 4 OF THE IMPUGNED ORDER DATED 2.9.2005. FURTHER ON ASSESSEES APPLICATION U/S.15 4 THE ASSESSING OFFICER HAS GRANTED INTEREST U/S.244A ONLY FOR THE PERIOD FROM 07.6.2002 TO 30.6.2003 AGAINST ASSESSEES CLAIM FOR SUCH INTEREST FROM 1.4.1995. IN VIEW OF THESE FACTS, WE ARE OF THE FIRM VIEW THAT THIS APPEAL OF THE ASSESSEE IS M AINTAINABLE AND TO BE DECIDED ON THE GIVEN FACTS. ACCORDINGLY, THE FIRST GRIEVANCE OF THE ASSESSEE THAT THE LOWER AUTHORITIES HAVE NOT ACCEPTED THE CLAIM OF THE ASSE SSEE BY GIVING THE REASON THAT THE APPEAL IS NOT MAINTAINABLE, DOES NOT STAND HERE. T HE REVENUE ITSELF HAS ALLOWED INTEREST TO THE ASSESSEE BUT NOW THE QUESTION ARISE S FOR HOW MUCH PERIOD. BUT IT IS FOR SURE THAT THIS APPEAL IS MAINTAINABLE. 9. NOW THE QUESTION ARISES, WHETHER THE ASSESSEE IS ENTITLED FOR INTEREST ONLY FOR THE PERIOD 07-06-2002 TO 30-06-2003 OR FROM 01-04-1 995 TO TILL DATE. FOR THAT, NOW WE HAVE TO GO THROUGH THE RELEVANT FACTS OF THE CAS E, THAT ARE THE ASSESSEE IS ENTITLED TO INTEREST U/S.244A AS STOOD RECOGNIZED EVEN IN THE INTIMATION U/S.143(1) DATED 12.12.1995. ACCORDINGLY, PROCEEDING ON THIS FOOTINGS, WE ARE OF THE OPINION THAT THE PROVISION OF LAW THAT REALLY APPLIES IS SUB-SECTION (3) OF SECTION 244A WHICH IN EFFECT MANDATES THAT CONSEQUENT UPON ANY SUB SEQUENT ORDER ON RECTIFICATION, REVISION, RE-ASSESSMENT ETC. IF THE AMOUNT ON W HICH INTEREST WAS PAYABLE UNDER SUB-SECTION (1) HAS BEEN INCREASED OR REDUCED, AS THE CASE MAY BE, THE INTEREST SHALL BE INCREASED OR REDUCED ACCORDINGLY. WE ARE O F THE VIEW, THAT SUB-SECTION (1) OF SECTION 244A PRESCRIBES THE FORMULA FOR QUANTIFIC ATION OF INTEREST U/S.244A AND WHEN READ WITH PROVISION OF SUB-SECTION (3) IT CLE ARLY MEANS THAT CONSEQUENT UPON THE SUBSEQUENT ORDER OF APPEAL OR REVISION OR RECT IFICATION ETC. THE QUANTUM OF INTEREST U/S.244A AS DETERMINED IN PURSUANCE OF SUB -SECTION (1) WOULD BE APPROPRIATELY INCREASED OR DECREASED. THE RELEVANT PROVISIONS OF SECTION 244A OF THE ACT READS AS UNDER:- 244A (1) WHERE REFUND OF ANY AMOUNT BECOMES DUE TO THE ASSESSEE UNDER THIS ACT, HE SHALL, SUBJECT TO THE PROVISIONS OF TH IS SECTION, BE ENTITLED TO RECEIVE, IN ADDITION TO THE SAID AMOUNT, SIMPLE INT EREST THEREON CALCULATED IN THE FOLLOWING MANNER, NAMELY:- ITA NO.14201/AHD/2006 A.Y.1995 -96 TORRENT PHARMACEUTICALS LTD. V. ACIT, CIR-8, ABD PAGE 8 (A) WHERE THE REFUND IS OUT OF ANY TAX BY WAY OF AD VANCE TAX OR TREATED AS PAID UNDER SECTION 199, DURING THE FINANCIAL YEAR IMMEDI ATELY PRECEDING THE ASSESSMENT YEAR, SUCH INTEREST SHALL BE CALCULATED AT THE RATE OF 1 AND HALF PER CENT FOR EVERY MONTH OR PART OF A MONTH COMPRIS ED IN THE PERIOD FROM THE 1STD DAY OF APRIL OF THE ASSESSMENT YEAR TO THE DATE ON WHICH THE REFUND IS GRANTED; PROVIDED THAT NO INTEREST SHALL BE PAYABLE IF THE A MOUNT OF REFUND IS LESS THAN TEN PER CENT OF THE TAX AS DETERMINED SUB-SECTION ( 1) OF SECTION 143 OR ON REGULAR ASSESSMENT; (B) IN ANY OTHER CASE, SUCH INTEREST SHALL BE CALCU LATED AT THE RATE OF ONE HALF PER CENT FOR EVERY MONTH OR PART OF A MONTH COMPRIS ED IN THE PERIOD OR PERIODS FROM THE DATE OR, AS THE CASE MA BE, DATES OF PAYMENT OF THE TAX OR PENALTY TO THE DATE ON WHICH THE REFUND IS GRANT ED. EXPLANATION, - FOR THE PURPOSES OF THIS CLAUSE, DAT E OF PAYMENT OF TAX OR PENALTY MANS THE DATE ON AND FROM WHICH THE MOUNT O F TAX OR PENALTY SPECIFIED IN THE NOTICE OF DEMAND ISSUED UNDER SECT ION 156 IS PAID IN EXCESS OF SUCH DEMAND. (2) IF THE PROCEEDINGS RESULTING IN THE REFUND ARE DELAYED FOR REASONS ATTRIBUTABLE TO THE ASSESSEE, WHETHER WHOLLY OR IN PART, THE PERIOD OF THE DELAY SO ATTRIBUTABLE TO HIM SHALL BE EXCLUDED FROM THE P ERIOD FOR WHICH INTEREST IS PAYABLE, AND WHERE ANY QUESTION ARISES AS TO THE PE RIOD TO BE EXCLUDED, IT SHALL BE DECIDED BY THE CHIEF COMMISSIONER OR COMMI SSIONER WHOSE DECISION THEREON SHALL BE FINAL. (3) WHERE, AS A RESULT OF AN ORDER UNDER SUB-SECTIO N (3) OF SECTION 115WE OR SECTION 115WF OR SECTION 115WG OR SUB-SECTION (3) O F SECTION 143 OR SECTION 144 OR SECTION 147 OR SECTION 154 OR SECTION 155 OR SECTION 250 OR SECTION 254 OR SECTION 260 OR SECTION 262, OR SECTION 263 OR SE CTION 264 OR AN ORDER OF THE SETTLEMENT COMMISSION UNDER SUB-SECTION (4) OF SECT ION 245D, THE AMOUNT ON WHICH INTEREST WAS PAYABLE UNDER SUB-SECTION (1) HA S BEEN INCREASED OR REDUCED, AS THE CASE MA BE, THE INTEREST SHALL BE I NCREASED OR REDUCED ACCORDINGLY, AND IN A CASE WHERE THE INTEREST IS RE DUCED, THE ASSESSING OFFICER SHALL SERVE ON THE ASSESSEE A NOTICE OF DEM AND IN THE PRESCRIBED FORM SPECIFYING THE AMOUNT OF HE EXCESS INTEREST PAID AN D REQUIRING HIM TO PA SUCH AMOUNT; AND SUCH NOTICE OF DEMAND SHALL BE DEEMED T O BE A NOTICE UNDER SECTION 156 AND THE PROVISIONS OF THIS ACT SHALL AP PLY ACCORDINGLY. (4) IN THE PRESENT CASE BEFORE US, INTEREST U/S.244A W AS GRANTED, AS ALREADY MENTIONED, EVEN IN THE INTIMATION U/S.143(1) DATED 12.12.1995 AND THEREAFTER WHEN FINAL ORDER AFTER RECTIFICATION, RE-ASSESSMENT, REVISION ETC. I S PASSED THE QUANTUM OF THAT INTEREST, DETERMINED IN PURSUANCE OF THE FORMULA OF SUB-SECTION (1) OF SECTION 244A, ITA NO.14201/AHD/2006 A.Y.1995 -96 TORRENT PHARMACEUTICALS LTD. V. ACIT, CIR-8, ABD PAGE 9 NEEDS TO BE INCREASED OR DECREASED AS THE AMOUNT ON WHICH THE INTEREST WAS PAYABLE HAS INCREASED. IN OTHER WORDS, ON THE BASI S OF INCOME AND TAX LIABILITY FINALLY DETERMINED, INTEREST U/S.244A IS TO BE COM PUTED IN ACCORDANCE WITH THE FORMULA OF SECTION 244A(1). ACCORDINGLY IN THE PRE SENT CASE, SUCH INTEREST IS TO BE COMPUTED W.E.F. 1.4.1995 AND THE QUANTUM HAS TO BE DETERMINED WITH REFERENCE TO THE INCOME AND TAX LIABILITY FINALLY DETERMINED. SI NCE, ASSESSEES PLEA OF EXISTENCE OF A MISTAKE APPARENT ON RECORD IN THE APPEAL EFF ECT GIVING ORDER DATED 30.6.2003 HAS BEEN ADMITTED BY THE AO IN THE ORDER U/S.154 OF THE ACT, THE SAID RECTIFICATION ORDER SHOULD HAVE BEEN PASSED GRANTING THE SAID INT EREST U/S.244A APPROPRIATELY WITH EFFECT FROM 1.4.1995 AND THE ASSESSING OFFICE R WAS NOT JUSTIFIED IN RESTRICTING IT TO THE PERIOD OF 7.6.2002 TO 30.6.2003. 10. IN VIEW OF THE ABOVE VIEW, NOW WE HAVE TO DISCU SS THE ARGUMENTS OF THE AO, WHY HE HAS CURTAILED THE PERIOD FOR GRANTING INTERE ST U/S.244A OF THE ACT. WE FIND THAT THE ASSESSING OFFICER HAS INVOKED THE PROVISION OF SUB-SECTION (2) OF SECTION 244A WHICH IN EFFECT PROVIDES THAT IF THE PROCEEDINGS R ESULTING INTO REFUND ARE DELAYED FOR REASONS ATTRIBUTABLE TO THE ASSESSEE, THE PE RIOD OF DELAY SO ATTRIBUTABLE TO THE ASSESSEE SHALL BE EXCLUDED FROM THE PERIOD FOR WH ICH THE INTEREST IS PAYABLE. WE FIND THAT SUB-SECTION (2) DOES NOT OVERRIDE THE PROVISIONS OF SUB-SECTION (3) AS ANALYZED AND APPLIED TO THE PRESENT CASE. THIS IS A SIMPLE CASE, WHERE WE HAVE TO FIND OUT ON WHICH AMOUNT THE INTEREST WAS PAYABLE UNDER SUB-SEC. (1) AND HENCE SUB-SECTION (3) HAS TO BE APPLIED IN TOTO. A CONJ OINT READING OF SUB-SECTIONS (1) AND (3) OF SECTION 244A RENDERS ALMOST IRRELEVANT FOR THIS CASE THE VARIOUS OTHER STAGES AND VICISSITUDES THROUGH WHICH THE ASSESSM ENT PROCEEDINGS PASSED DURING THE INTERVENING PERIOD. WE FURTHER FIND FROM THE FA CTS OF THE CASE THAT THE CERTIFICATE DATED 27 TH MAY, 2002 WAS FILED BY THE ASSESSEE WITH THE ASS ESSING OFFICER ON 7.6.2002 WITH LETTER DATED 1.6.2002 AND HE, THEREF ORE, CONCLUDES THAT THE CERTIFICATE U/S.72A(2)(II) OF THE ACT WAS ISSUED TO THE ASSES SEE ONLY ON 27.5.2002 AND THE SAID CERTIFICATE WAS PRODUCED BY THE ASSESSEE ON 07/06/ 2002 IN THIS OFFICE VIDE LETTER DATED 1/06/2002. ACCORDING TO HIM, THE SET OFF OF THE LOSS DEPENDED ON THE CERTIFICATE OF THE SPECIFIED AUTHORITY COMING UNDER THE MINISTRY OF COMMERCE & INDUSTRY AND THE CONTENTION OF THE ASSESSEE THAT IT IS ENTITLED FOR INTEREST U/S.244A OF THE ACT W.E.F. 1.4.1995 CANNOT BE ACCEPTED. AND HE ATTRIBUTED THE DELAY IN OBTAINING THE CERTIFICATE TO THE ASSESSEE IN TERMS OF SUB-S EC. (2) OF SEC. 244A OF THE ACT. WE ITA NO.14201/AHD/2006 A.Y.1995 -96 TORRENT PHARMACEUTICALS LTD. V. ACIT, CIR-8, ABD PAGE 10 FIND FROM THE ABOVE FACTS NARRATED BY THE ASSESSING OFFICER THAT THERE IS NO SUBSTANCE IN THIS ARGUMENT FIRSTLY BECAUSE THE REVE NUE HAS GRANTED SET OFF OF LOSS OF INDIA INFUSION LTD. IN THE RECTIFICATION ORDER D ATED 24.12.1998 ITSELF AND THUS, IT IS OBVIOUS THAT NO PART OF THE DELAY WAS ATTRIBUTABLE TO THE ASSESSEE. ASSESSEE FILED PETITIONS IN THE HIGH COURT AS EARLY AS IN 1994 & 95 AND PURSUED THEM AND THE DEPARTMENT ALLOWED THE SET OFF LOSS IN ITS RECTI FICATION ORDER DATED 24.12.1998 AFTER TAKING COGNIZANCE OF THE HIGH COURT ORDER DATED MA Y-JUNE, 1997. ACCORDINGLY, WE FIND THAT THE ASSESSEE HAS NOT DELAYED THE REFUND P ROCEEDINGS, WHICH IS BEYOND HIS CONTROL AND THIS WILL BE APPARENT FROM A CHRONOLOGI CAL DESCRIPTION OF THE EVENTS AS DISCUSSED HEREUNDER:- (I) THE ASSESSEE HAD APPROACHED THE HONBLE GUJARAT HIGH COURT BY ITS APPLICATION NO. 330/1994 AND THE CONNECTED COMPANY PETITION NO. 18/95 - AS MENTIONED AT THE TOP OF THE HONBLE HIGH COURT DECISION OF MAY-JUNE, 1997. (II) ASSESSEE FILED RETURN OF INCOME ON 30.11.1995 BUT ASSESSEES THOSE PETITIONS WERE PENDING BEFORE THE HONBLE HIGH COURT AS THE ORDER GRANTING THE SCHEME OF AMALGAMATION WAS PASSED BY THE HONBLE HIGH COURT ONLY IN MAY-JUN E, 1997. THE HONBLE HIGH COURT HAD APPROVED THE SCHEME OF AMALGAMATION VIDE ITS ORDER OF MAY-JUNE, 1997 BY FI XING THE APPOINTED DATE AS 1.4.1994 AND THE AMALGAMATION HAS BECOME EFFECTIVE FROM 1.4.1994 (III) CONSEQUENTLY, THE THEN ASSESSING OFFICER PAS SED AN ORDER OF RECTIFICATION U/S.154 DATED 24.12.1998. THEREIN H E HAS FIRST NOTICED THE ASSESSEES APPLICATION DATED 14.8.199 8 AND HAS ALLOWED DEDUCTION FOR THE LOSS DETERMINED IN THE ASSESSMENT ORDER DATED 26.12.1997 IN THE CASE OF INDIA INFUSI ON LTD. 11. WE WANT TO STATE FURTHER TO WHAT IS STATED HERE INABOVE THAT THE ASSESSING OFFICER HAS ALLEGED THAT THE DELAY IN GRANTING REFU ND WAS ATTRIBUTABLE TO THE ASSESSEE ON THE GROUND THAT ACCORDING TO HIM THE SET OFF OF THE LOSS DEPENDED ON THE CERTIFICATE OF THE SPECIFIED AUTHORITY COMING UNDER THE MINISTRY OF COMMERCE & INDUSTRY. THE CONTENTION OF THE ASSESSEE THAT IT I S ENTITLED FOR INTEREST U/S. 244A OF THE ACT W.E.F. 01.04.1995 CANNOT BE ACCEPTED. THE DELAY IN OBTAINING THE CERTIFICATE HAS TO BE HELD TO BE ATTRIBUTABLE TO THE ASSESSEE I N TERMS OF SUB-SEC.(2) OF SEC. 244A OF THE ACT. WE WANT TO STATE WITH REFERENCE TO THI S OBSERVATION OF THE ASSESSING OFFICER THE FOLLOWING: ITA NO.14201/AHD/2006 A.Y.1995 -96 TORRENT PHARMACEUTICALS LTD. V. ACIT, CIR-8, ABD PAGE 11 (I) THE RETURN OF INCOME WAS FILED ON THE DUE DATE WHEREIN BY WAY OF NOTE NO.5 IT WAS STATED THAT THE SCHEME OF AMALGAMATION OF INDIA INFUSION LTD WITH THE ASSESSEE COMPANY WAS PENDING FOR APPRO VAL OF HIGH COURT AND THE APPOINTED DATE OF AMALGAMATION WAS ON 01.04 .1994. THE ASSESSEE HAD MADE APPLICATION WITH THE PRESCRIBED A UTHORITIES U/S. 72A WHICH WAS PENDING. THE ASSESSEE WOULD, THEREFORE, REVISE ITS RETURN OF INCOME TO CLAIM CARRIED FORWARD DEPRECIATION AND LO SS OF INDIAN INFUSION LTD UPON GETTING APPROVAL OF THE AMALGAMATION FROM THE GUJARAT HIGH COURT AND THE PRESCRIBED AUTHORITY. THUS, THE ASSE SSEE HAD ALREADY FILED APPLICATION FOR APPROVAL U/S. 72A. (II) THE PRESCRIBED AUTHORITY HAD ISSUED A LETTER DATED 26.03.1997 WITH REFERENCE TO SAID APPLICATION WHEREIN THEY HAD ST ATED THAT THEY WERE SATISFIED THAT THE IF THE AMALGAMATION WAS IN ACCO RDANCE WITH THE SCHEME SUBMITTED BY THE ASSESSEE COMPANY THEY WOUL D BE IN A POSITION TO RECOMMEND TO THE CENTRAL GOVERNMENT T HE SAID SCHEME OF AMALGAMATION U/S. 72A. (III) THE GUJARAT HIGH COURT HAD APPROVED THE SCHEM E OF AMALGAMATION VIDE ORDER DATED 07.05.1997. (IV) THE PRESCRIBED AUTHORITY HAD GIVEN RECOMMENDAT ION HAS APPROVED AND THE GOVERNMENT HAD MADE DECLARATION ON 19.07.2001 T O THE EFFECT THAT THE CONDITIONS OF SECTION 72A WERE SATISFIED. (V) ON THE BASIS OF THE SAID DECLARATION PRESCRIBED AUTHORITY HAD GIVEN CERTIFICATE U/S. 72A ON 27.05.2002 WHICH WAS RECEIV ED BY THE ASSESSEE COMPANY IN JUNE 2002. 12. THUS, IN VIEW OF THE ABOVE FACTS, WE APPRECIATE THAT THE ASSESSING OFFICER WAS NOT JUSTIFIED IN HOLDING THAT THE DELAY IN OBTAININ G CERTIFICATE U/S. 72A WAS ATTRIBUTABLE TO ASSESSEE. HE WAS REQUIRED TO CONSIDER THE ABOVE EVENTS WHICH SHOW THAT THE ASSESSEE COMPANY WAS ALREADY IN THE PROCESS OF SEEK ING THE REQUIRED CERTIFICATE BUT ON ACCOUNT OF DELAY IN GOVERNMENT MACHINERY SUCH CE RTIFICATE WAS RECEIVED BY THE ASSESSEE ONLY IN MAY, 2002. THEREFORE, THE ACTION OF THE ASSESSING OFFICER FOR RESTRICTING THE PERIOD FOR GRANTING INTEREST U/S. 2 44A IS NOT CORRECT. IN OUR VIEW, THE ASSESSEE FILED RETURN OF INCOME ON 30-11-1995 AND T HE PETITION GRANTING THE SCHEME OF AMALGAMATION BEFORE THE HONBLE HIGH COURT WAS P ENDING AS ON THAT DATE AND THIS FACT WAS NARRATED BY WAY OF NOTE ATTACHED IN THE RE TURN OF INCOME AND FINALLY THE HONBLE HIGH COURT HAS APPROVED THE SCHEME OF AMALG AMATION VIDE ITS ORDER MAY- JUNE, 1997 FIXING THE APPOINTED DATE AS 01-04-1994. CONSEQUENTLY, THE AO PASSED RECTIFICATION ORDER U/S.154 OF THE ACT DATED 24-12- 1998, WHEREBY HE HAS ALLOWED ITA NO.14201/AHD/2006 A.Y.1995 -96 TORRENT PHARMACEUTICALS LTD. V. ACIT, CIR-8, ABD PAGE 12 DEDUCTION FOR THE LOSS DETERMINED IN THE ASSESSMENT OF INDIA INFUSION LTD. VIDE ORDER DATED 26-12-1997 FOR THE ASSESSMENT YEAR 1995-96. THE ASSESSING OFFICER ACCEPTED THE EXISTENCE OF ASSESSEES CLAIM FOR INTE REST U/S.244A OF THE ACT AND ALLOWED INTEREST FOR PART OF THE PERIOD OF 07-06-20 02 TO 30-06-2003. THE REFUND WAS GRANTED TO THE ASSESSEE ON ASSESSEES APPLICATION U /S.154 BY THE ASSESSING OFFICER DATED 02-09-2005 ALONG WITH INTEREST FOR THE PART O F THE PERIOD ON THE LOSS CLAIMED BY THE ASSESSEE. IN VIEW OF THESE, WE ARE OF THE VIEW THAT THE PROVISIONS OF SUB-SECTION 3 OF SECTION 244A APPLIES TO THE PRESENT CASE, IN T HE GIVEN FACTS AND CIRCUMSTANCES, WHICH MANDATES THAT CONSEQUENT UPON ANY SUBSEQUENT ORDER ON RECTIFICATION, REVISION, RE-ASSESSMENT ETC. IF THE AMOUNT ON W HICH INTEREST WAS PAYABLE UNDER SUB-SECTION (1) HAS BEEN INCREASED OR REDUCED, AS THE CASE MAY BE, THE INTEREST SHALL BE INCREASED OR REDUCED ACCORDINGLY. WE ARE O F THE VIEW, THAT SUB-SECTION (1) OF SECTION 244A PRESCRIBES THE FORMULA FOR QUANTIFICAT ION OF INTEREST U/S.244A AND WHEN READ WITH PROVISION OF SUB-SECTION (3) IT CLEARLY MEANS THAT CONSEQUENT UPON THE SUBSEQUENT ORDER OF APPEAL OR REVISION OR RECTIFIC ATION ETC. THE QUANTUM OF INTEREST U/S.244A AS DETERMINED IN PURSUANCE OF SUB-SECTION (1) WOULD BE APPROPRIATELY INCREASED OR DECREASED. IN ASSESSEES CASE INTERES T U/S.244A WAS GRANTED, AS ALREADY MENTIONED, EVEN IN THE INTIMATION U/S.143(1 ) DATED 12.12.1995 AND THEREAFTER WHEN FINAL ORDER AFTER RECTIFICATION, RE-ASSESSMEN T, REVISION ETC. IS PASSED THE QUANTUM OF THAT INTEREST, DETERMINED IN PURSUANCE OF THE FORMULA OF SUB-SECTION (1) OF SECTION 244A, NEEDS TO BE INCREASED OR DECREASED AS THE AMOUNT ON WHICH THE INTEREST WAS PAYABLE HAS INCREASED. IN VIEW OF THE ABOVE, WE ARE OF THE FIRM VIEW THAT IN THE GIVEN FACTS AND CIRCUMSTANCES OF THE PR ESENT CASE, THE ASSESSEE IS ENTITLED TO INTEREST ON REFUND U/S.244A OF THE ACT WITH EFFECT FROM 1-4-1995. WE ACCORDINGLY DIRECT THE ASSESSING OFFICER. 13. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 17/09/2009 SD/- SD/- (D.C.AGRAWAL) (MAHAVI R SINGH) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) AHMEDABAD, DATED : 17/09/2009 *DKP COPY OF THE ORDER FORWARDED TO :- ITA NO.14201/AHD/2006 A.Y.1995 -96 TORRENT PHARMACEUTICALS LTD. V. ACIT, CIR-8, ABD PAGE 13 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT(APPEALS)-XVI, AHMEDABAD 4. THE CIT CONCERNS. 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER, /TRUE COPY/ DEPUTY / ASSTT.REGISTRAR ITAT, AHMEDABAD