KIFS FINSTOCK LIMITED,THANE vs. ASSISTANT COMMSIONER CIRCLE 16(1), MUMBAI

The grievance of the assessee reads as under: “1. The Ld. CIT Appeals has erred in dismissing as non-maintainable as the assessee was out of CIRP a year before passing the order and same was communicated to the Ld CIT Appeals.

None appeared on behalf of the assessee in spite of notice. Therefore, we decided to proceed exparte.

The entire quarrel revolves around the dismissal of the appeal for the reasons that the National Company Law Tribunal [NCLT] has issued a moratorium vide its order dated 03.03.2023, by which the NCLT has appointed Shri Sushil Kumar Agarwal as an insolvency professional. The NCLT inter alia held that “it prohibits the institution of suits or continuation of pending suits or proceedings against the corporate debtor, including execution of any judgment, decree or order in any court of law, tribunal, arbitration, penal or other authority.” 5. In light of the above, the CIT(A) held the appeal as non-maintainable. We are of the considered view that a liberty should be given to the assessee for revival of the appeal once the moratorium period expires. Therefore, modifying A.Y. 2018-19 KIFS Finstock Ltd. the findings of the CIT(A), we give liberty to the assessee for revival of the appeal once the final order/outcome of the NCLT comes. 6. With this modification, the appeal of the assessee is dismissed. Order pronounced in the open court on .2025.