Income tax department appeals to the ITAT against an order that favoured NIIT, with a ₹1.72 crore tax effect
- Legal
- Computers - Software
NIIT Limited has told the exchanges that the Deputy Commissioner of Income Tax, Central Circle-20, Delhi, has filed an appeal against the company before the Income Tax Appellate Tribunal (ITAT), New Delhi, for assessment year 2018-19. The company received a copy of the appeal on 15 Oct 2026 and made the disclosure on 16 Oct 2026 under Regulation 30 of the SEBI listing rules.
The dispute is about the disallowance of expenditure incurred in relation to exempt income under Section 14A of the Income-tax Act, 1961, read with Rule 8D of the Income-tax Rules. The company says the Commissioner of Income Tax (Appeals) has already decided that matter in its favour, and the income tax department is now challenging that order before the tribunal.
The tax effect of the matter is ₹1.72 crore. The company says it does not expect any adverse impact on its financial, operational or other activities, and the filing states no quantum of claims.
Inference
The appeal is by the tax department against a decision that went in the company’s favour, so the outcome is not yet known. If the tribunal were to rule for the department, the filing puts the tax effect at ₹1.72 crore.
The company does not expect any adverse impact. The filing does not say when the tribunal will hear the appeal.
Reference: Original filing (PDF)
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