The Indore Bench of the Income Tax Appellate Tribunal (ITAT) has granted relief to commercial pilot Jay Krishnan Nair by setting aside a 13-year-old ex-parte assessment order and the corresponding penalty order, and remanding the matter back to the Assessing Officer for fresh adjudication.
The Bench of Paresh M. Joshi (Judicial Member) and Bhagirath Mal Biyani (Accountant Member) ruled, “We are of the considered view that income of the assessee is required to be computed and assessed according to law by following due process… In the instant case… due to default of earlier counsel… no effective steps were taken.”
The case pertains to Assessment Year 2010–11, where Nair’s total income was assessed at Rs. 99.45 lakh under Section 144 of the Income Tax Act, 1961. The original return showed ‘nil’ income. The order, passed in December 2017, was challenged belatedly in July 2023—after a delay of over 2,000 days.
Nair, who worked internationally as a commercial pilot—including a stint with Nigeria Airways—contended that he was unaware of the assessment proceedings and the ex-parte order due to his overseas assignments and a change of address. The delay, he argued, was attributable to his professional obligations and lack of timely communication from his Chartered Accountant (CA).
Significantly, the Tribunal took note of an affidavit filed by Nair’s former CA, R.J. Shah, who admitted to lapses in handling the case and failing to notify Nair of the assessment developments. The Tribunal emphasized that both the assessment and first appellate orders lacked merit-based adjudication and had resulted in serious prejudice to the assessee.
The Tribunal directed the Assessing Officer to pass a fresh, reasoned order on a de novo basis within six months. The penalty proceedings under Section 271(1)(c) were also remanded, being consequential to the main assessment.
Case Details
Case Title: Jay Krishnan Nair Versus NFAC
Case No.: ITA Nos. 538 &732/Ind/2024
Date: 24.06.2025
Counsel For Petitioner: Gagan Tiwari, AR
Counsel For Respondent: Ashish Porwal, Sr. DR
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