Liquidation under insolvency law defeated a Revenue appeal, as no substantial question of law arose on the facts.

The High Court noted that the assessee company had entered liquidation under the Insolvency and Bankruptcy Code, with the Official Liquidator appointed and no representation appearing during the moratorium period. It accepted that the Tribunal had properly relied on the liquidation status and surrounding circumstances in dismissing the Revenue's Section 260A appeal and cross-objection, while leaving liberty to seek recall within limitation if required. On those facts, the Court found that no substantial question of law arose and the Revenue's appeal was not entertained.

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Issues: Whether the Revenue's appeal under Section 260A of the Income-tax Act, 1961 could be interfered with when the assessee company had entered liquidation under the Insolvency and Bankruptcy Code, 2016 and there was no representation during the moratorium period.

Analysis: The Tribunal had taken note of the commencement of liquidation proceedings pursuant to the NCLT order, the company having become defunct on appointment of the Official Liquidator, and the absence of representation for the assessee during the moratorium under Section 14(1)(a) of the Insolvency and Bankruptcy Code, 2016. The High Court found that the Tribunal had rightly relied on the liquidation status and the surrounding circumstances while dismissing the Revenue's appeal and the cross-objection, with liberty to seek recall within limitation if occasion arose. On those facts, no substantial question of law was made out.

Conclusion: The Revenue's appeal was not entertained and the dismissal by the Tribunal was upheld.

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