3i Infotech Wins Rs 34.38 Crore Tax Relief as CIT(A) Deletes Transfer Pricing Addition

3i Infotech Limited has received a major favorable ruling from the Commissioner of Income Tax (Appeals) [CIT(A)], granting the IT solutions company complete relief in a tax dispute dating back to Assessment Year (A) 2013-14.

Key Details of the Tax Order

• Order Authority: Commissioner of Income Tax (Appeals)
• Relevant Period: Assessment Year 2013-14
• Adjustment Amount Deleted: ₹34.38 Crore
• Legal Provision: Appeal against assessment completed under Section 143(3) read with Section 263 of the Income-tax Act, 1961
• Financial & Cash Flow Impact: Nil

Detailed Impact Analysis

The appeal pertained to a Transfer Pricing adjustment of ₹34.38 crore previously imposed on the company. In its order dated July 30, 2026, the Hon’BLE CIT(A) allowed 3i Infotech Limited’s appeal in full and deleted the entire addition of ₹34.38 crore.

In an official filing with the stock exchanges, 3i Infotech Limited confirmed that the ruling has no tax or cash flow impact on the company. The matter was not previously disclosed as a contingent liability, given that the firm possessed sufficient carried-forward tax losses to cover potential exposure.

By setting aside the adjustment, the order restores 3i Infotech Limited’s tax position for A 2013-14. Crucially, this preserves the company’s available carried-forward tax losses under the Income-tax Act, 1961, protecting its future tax flexibility and balance sheet health.