The optical properties of (8,0) single wall carbon nanotubes (SWCNTs) alloyed with nitrogen (N) are computed using ab initio density functional theory (DFT). Both the real as well as imaginary dielectric constant in the long wavelength limit depends essentially on the nature of electromagnetic field. It is observed that for CN3 systems, the reflectivity vanishes at 3.45, 6.95, and 8.20 eV, respectively for parallel, perpendicular polarization, and unpolarized light with incidence (1,0,0), while for C3N the vanishing reflectivity occurs only for parallel polarization at 8.05 eV. Although the magnitude of the significant peaks of loss function of CN3 systems are comparable to C3N in perpendicular and unpolarized situation, however, they are significantly one order of magnitude higher in CN3 for parallel polarization.