NIIT Ltd Gets Relief in Rs 5.34 Crore Income Tax Matter

NIIT Limited has informed the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) about a recent favourable income tax ruling received by it that significantly reduces its earlier tax liabilities. The update was disclosed in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and the SEBI Master Circular dated November 11, 2024.

On April 27, 2015, the Assistant or Deputy Commissioner of Income Tax, Circle-16, New Delhi, issued an order against NIIT Limited under Section 143(3) of the Income Tax Act, 1961, raising a tax demand of Rs. 5.34 crores against the company. NIIT Limited had challenged the demand by submitting an appeal before the Commissioner of Income Tax (Appeals)-44, Delhi.

On June 13, 2025, the Commissioner of Income Tax (Appeals)-44, Delhi, passed an order mainly in favour of the NIIT Limited. The appellate authority has deleted or reversed most of the additions made by the Assessing Officer.

However, one component related to the corporate guarantee charge has been partially updated:

• The Assessing Officer had applied a rate of 1.77%, which has now been amended to 0.7% by the appellate authority.
• This means while a small portion of the disallowance remains, its impact has been significantly decreased.

The NIIT Limited clarified that there were no violations involved in the case. It was a complete matter of disagreement over tax calculations and assessments.

The company had earlier shown the Rs. 5.34 crore demand as a possible liability in its financial statements. With a favourable ruling that NIIT will now reverse this contingent liability in its books, and the remaining disallowance due to the corporate guarantee charge will not affect the financials of the company, as it had already been accounted for earlier.