Clean slate principle bars revenue pursuit where insolvency resolution plan omits statutory dues and no claim was filed

Where a corporate insolvency resolution plan was approved without any provision for statutory dues and the revenue had not lodged its claim before the resolution professional, the clean slate principle was applied to pre-resolution assessment proceedings. Continuing the appeal was treated as serving no useful purpose because no recovery could follow even if the revenue succeeded. The appeal was therefore considered not maintainable in practical effect and was dismissed.

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Issues: Whether the revenue's appeal could be pursued when the assessee had undergone insolvency resolution, the resolution plan made no provision for statutory dues, and the revenue had not lodged its claim before the resolution professional.

Analysis: The appeal related to an assessment for a period preceding approval of the resolution plan. The proceedings noted that the corporate insolvency resolution process had commenced, the resolution plan had been approved without earmarking amounts for statutory dues, and the revenue had not filed its claim before the resolution professional. In these circumstances, the clean slate principle applied, and continuing the appeal would serve no useful purpose because no recovery could follow even if the revenue succeeded.

Conclusion: The appeal was not maintainable in practical effect and was dismissed.

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