Aditya Infotech shares rise 3.1% on ITAT win that erases Rs 40.38 crore tax additions

In its September 9, 2026 filing under Regulation 30 of the SEBI (LODR) Regulations, Aditya Infotech informed NSE and BSE that:

• The ITAT Delhi has pronounced its order in respect of the company’s appeal relating to AY 2019-20.
• The tribunal has deleted the balance addition of Rs. 3.60 crore that had remained outstanding pursuant to an earlier order by the Commissioner of Income Tax (Appeals).
• The filing notes that “the additional grounds raised by the Revenue have also been dismissed.”
• As a result, “the entire additions aggregating to Rs. 40.38 crore made during the assessment proceedings stand deleted.”
• The order was received by the company on September 9, 2026 at 10:03 IST via email.

Annexure A to the filing (page 2) clarifies that the matter relates to additions made during assessment proceedings for AY 2019-20 under Section 143(3) of the Income Tax Act, 1961.

On the financial impact, the company has been cautious. It states that it will file an application with the Income Tax Department “for giving effect to the aforesaid order” and that “the financial impact, if any, shall be determined once effect to the order is given.” In other words, the cash-flow and P&L implications will only be clear after the tax department implements the tribunal’s decision.

The filing itself is procedural and does not quantify any immediate profit boost or refund. However, the market reaction suggests investors are focusing on three key aspects of the order:

1. Removal of a large contingent liability
   The ITAT has effectively wiped out additions aggregating to Rs. 40.38 crore for AY 2019-20. Even though only Rs. 3.60 crore was highlighted as the balance outstanding in the earlier Commissioner (Appeals) order, the full quantum of additions had been an overhang on the company’s tax position.

2. Clarity after a long-running dispute
   The company had earlier intimated the market about these income tax proceedings on January 16, 2026. With the latest order, the tribunal has not only deleted the remaining addition of Rs. 3.60 crore, but also dismissed the additional grounds raised by the Revenue. That combination signals a clean win at the appellate level and reduces uncertainty around further adverse tax action on this specific assessment year.

3. Improved visibility on future cash flows
   While the filing explicitly says the financial impact will be determined only after the order is given effect, traders are likely extrapolating that the deletion of Rs. 40.38 crore in additions reduces the risk of cash outflows on this count. For a company that has recently reported strong growth in revenue and profit, the removal of a potential tax drag can improve the perceived quality and durability of those earnings.

The live market commentary around the move emphasises that Aditya Infotech had already been delivering robust numbers in its latest reported quarter, with sharp year-on-year growth in both net sales and profit after tax. However, sequentially, profitability had moderated and margins had narrowed.

Against that backdrop, the ITAT order appears to have acted as a fresh, non-operational catalyst: it doesn’t change the underlying business trajectory overnight, but it does clean up a legacy tax issue that had been hanging over the stock.

Importantly, the tax ruling does not alter the company’s reported revenue or profit for the latest quarter. The filing does not provide any revised earnings, restatements, or margin data linked to the order. It is purely about the outcome of a specific assessment year’s dispute and its potential impact once implemented by the tax department.

For investors trying to size the impact, there are several things the disclosure does not spell out:

• There is no estimate of any refund, interest, or write-back that might arise once the order is given effect.
• The filing does not quantify how much of the Rs. 40.38 crore had already been paid versus treated as a contingent liability.
• There is no guidance on timelines for the Income Tax Department to give effect to the order.
• The company does not discuss whether similar issues exist for other assessment years.

The company’s language is deliberately conservative: it commits only to filing an application with the tax department and determining the financial impact “once effect to the order is given.”

Given that the stock was flat before the disclosure and then moved up 3.1%, the ITAT ruling appears to be the main driver of the day’s action. The market is effectively pricing in:

• Lower perceived tax risk on a sizeable Rs. 40.38 crore dispute.
• Cleaner balance-sheet optics as a legacy issue is resolved.
• Potential, though as yet unquantified, upside to future cash flows once the order is implemented.

Until the Income Tax Department gives effect to the order and the company quantifies the impact, the story remains about reduced uncertainty rather than booked earnings. For now, that has been enough to nudge Aditya Infotech’s shares higher and keep the focus on its underlying growth story rather than on tax litigation.