3i Infotech Limited has informed the Exchange about Pendency of Litigation(s)/dispute(s) or the outcome impacting the Company
3IINFOLTD · price
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3i Infotech Limited has received Certificates in Form 2 from the Principal Commissioner of Income Tax under the Direct Tax Vivad Se Vishwas Scheme, 2024. This confirms acceptance of the company's settlement applications for income tax litigations spanning five assessment years (AY 2012-13 to AY 2018-19). The total disputed tax additions/disallowances being settled amount to Rs. 79,838 lakhs (approximately Rs. 798 crore). The settlement will reduce the company's accumulated brought forward losses by the same amount. Critically, the company expects no incremental cash outflow from this settlement, as it involves loss adjustments rather than tax payments.
This is a positive development for shareholders as it resolves longstanding income tax disputes totaling nearly Rs. 800 crore without any cash outflow. The settlement clears uncertainty and reduces the company's tax litigation burden, though the write-off of brought forward losses may have accounting implications.