ORAL ORDER

(PER : HONOURABLE MR. JUSTICE BHARGAV D. KARIA)

1. Heard learned advocate Mr. Nikunt K.

Raval for the appellant and learned advocate Mr. Manish J. Shah for the caveator.

2. Since the issues involved in these tax appeals are similar, they have been heard together and would be disposed of by this common order.

3. Tax Appeal No. 414 of 2023 is filed by the Revenue under Section 260A of the Income Tax Act, 1961 (for short ‘the Act, 1961’) challenging the order dated 31.10.2022 passed by the Income Tax Appellate Tribunal, Surat Bench, Surat(for short “the Tribunal”) in ITA no.720/SRT/2018 for A.Y. 2013-2014 proposing the following questions of law:

“(1) Whether on the facts and in the circumstances of the case and in law, the Appellate Tribunal has erred in deleting the disallowance of Rs.75,15,081/- on account of depreciation on goodwill, when in fact, no goodwill was created on account of merger of Narmada Chematur Petrochemicals Limited (NPCL) particularly when assessee itself was the promoter of NPCL?

(2) Whether on the facts and in the circumstances of the case and in law, the Appellate Tribunal has erred in deleting the disallowance of Rs.17,13,60,400/- u/s.37(1) of the Ac