3i Infotech Ltd Granted Relief as Income Tax Appeals Tribunal Deletes Major Transfer Pricing Adjustment

3i Infotech Ltd Granted Relief as Income Tax Appeals Tribunal Deletes Major Transfer Pricing Adjustment​

3i Infotech Limited has secured a favorable ruling in an income tax matter concerning Assessment Year 2013-14. The company received an order from the Commissioner of Income Tax (Appeals), which allowed its appeal and deleted a significant transfer pricing adjustment, thereby granting relief to the organization.

The assessment was conducted under Section 143(3) read with Section 263 of the Income-tax Act, 1961, where a Transfer Pricing adjustment amounting to ₹34.38 crore had been initially made against the company.

Following the appeal, the Hon'ble CIT(A) confirmed the company’s position and ordered the deletion of the entire ₹34.38 crore Transfer Pricing adjustment.

The order has resulted in no impact on the company’s tax or cash flow status. The matter was previously managed without disclosure as a contingent liability because 3i Infotech Limited possessed sufficient carried forward tax losses. As a result of this ruling, the company's tax position for the relevant assessment year is now restored, ensuring the preservation of its carried forward tax losses under the applicable provisions of the Income-tax Act, 1961.

3IINFOLTD Stock Price Movement​

On Friday, shares of 3i Infotech Limited edged higher to settle at ₹23.21, closing up 2.92% from the previous close. The equity saw active trading throughout the day, recording a total volume of 1,599,202 shares against an intraday range that spanned between ₹22.3 and ₹23.32.