Many researches have been conducted on the effect of adoption of IFRS on value relevance of firms e.g. Mohd Halim and Zulkifli [2008], Ahmed and Goodwin [2006], Harris and Muller [1999], Bartov et al. [2005], Lin and Chen [2005], Horton and Serafeim [2006], Schiebel [2006], Niskanen et al. [2000] and Mohd Kadri et al. [2008]. Even though they have employed similar model [Ohlson, 1995], their results were not conclusive. In India, the effect of adoption of IFRS on value relevance of accounting numbers is still not known yet as the IFRS is not fully applicable. Current study utilised Ohlson [1995] model to investigate the relationship between market value, book value and earnings [value relevance] of Indian Information Technology (IT) firms under two different financial reporting environments namely Indian AS environment and IFRS environment. The results show that significant relationship exists between market value, book value and earnings throughout the period under study. When the sample is separated into AS environment and IFRS periods, a more significant relationship between market value, book value and earnings exists during the IFRS period.