Insolvency resolution effect on tax appeal: Revenue's challenge failed after NCLT approved sale of the corporate debtor as a going concern.

Revenue's appeal was treated as no longer maintainable where the NCLT had approved liquidation and sale of the corporate debtor as a going concern under insolvency proceedings. The Tribunal noted that the assessee produced the NCLT orders and the Revenue did not rebut their effect. Applying the principle that claims not covered by an approved insolvency resolution cease to survive, the Tribunal dismissed the appeal and left the Revenue free to file a fresh appeal if otherwise maintainable.

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Issues: Whether the Revenue's appeal against the assessment order could survive in view of the NCLT order approving sale of the assessee as a going concern under insolvency proceedings.

Analysis: The assessee placed the NCLT orders on record showing liquidation and subsequent approval of sale of the corporate debtor as a going concern. The Tribunal noted that the Revenue did not rebut the effect of the NCLT order. Relying on the principle that once insolvency resolution is approved, claims not forming part of the approved resolution cease to survive, the Tribunal treated the Revenue's grievance as no longer maintainable in the existing factual matrix.

Conclusion: The Revenue's appeal was dismissed, with liberty to file a fresh appeal if so advised and if the matter is otherwise appealable.

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