YellowFe(aq)3++ColourlessSCN(aq)−⇌Deep red[Fe(SCN)](aq)2+
When oxalic acid is added, it reacts with Fe3+ ions to form stable complex ion [Fe(C2O4)3]3−, thus decreasing the cone, of free Fe(aq)3+. Now, according to Le Chatelier’s principle, the reaction will shift in backward direction to increase the cone, of free Fe(aq)3+. Thus, conc, of [Fe(SCN)]2+ decreases, so the intensity of red colour decreases.