NIIT Wins Income Tax Appeal: ₹5.34 Crore Demand Quashed by CIT(A)
NIIT Limited secures major tax relief as the Income Tax Appellate Authority quashes Rs. 5.34 crore demand
NIIT Limited has secured a major relief in a longstanding tax litigation, with the Commissioner of Income Tax (Appeals)-44, Delhi ruling in favor of the company. The order, received on June 13, 2025, effectively nullifies a tax demand of Rs. 5.34 crore raised against the company for the Assessment Year 2011–12. The company disclosed the development to the National Stock Exchange...
NIIT Limited has secured a major relief in a longstanding tax litigation, with the Commissioner of Income Tax (Appeals)-44, Delhi ruling in favor of the company. The order, received on June 13, 2025, effectively nullifies a tax demand of Rs. 5.34 crore raised against the company for the Assessment Year 2011–12.
The company disclosed the development to the National Stock Exchange (NSE) and BSE via a regulatory filing dated June 14, 2025, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
The Assessing Officer issued the original tax demand under Section 143(3) of the Income Tax Act, 1961, dated April 27, 2015. NIIT Limited had contested this demand, leading to an appeal with the CIT(A)-44, Delhi.
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According to the filing, the appellate authority:
- Deleted all additions made by the Assessing Officer, except one related to a corporate guarantee charge.
- Reduced the applicable rate on the corporate guarantee from 1.77% to 0.7%, significantly lowering the financial implication.
The company confirmed that the Rs. 5.34 crore demand had already been disclosed as a contingent liability in its financial statements. Following this favorable order, NIIT will reverse the contingent liability, thereby improving its balance sheet.
Importantly, the partial disallowance relates to the corporate guarantee charge was already provisioned for in the books, ensuring that there will be no negative financial impact on the current statements.
In a communication signed by Arpita Bisaria Malhotra, Company Secretary and Compliance Officer, NIIT expressed satisfaction with the outcome and reaffirmed its commitment to regulatory compliance.
About NIIT Limited
NIIT Limited is a leading global talent development corporation headquartered in India, known for pioneering training and education services across IT, business process outsourcing, banking, and other sectors. Established in 1981, the company has played a pivotal role in building skilled manpower through its wide network of learning centers and corporate training programs. NIIT operates in over 30 countries and also provides managed training services to Fortune 500 companies through its corporate learning business segment.
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