Hello Abhishek,
Entity framework enable developers to create data access applications by programming against a conceptual application model, its goal is to eliminate the code and maintenance required by the data-oriented application. Hence, if your application related to
manipulate data/database, you could use the entity data model.
It could be properly used in a 3 tier application. Joel discussed a lot in his blog about using linq-to-sql in a 3 tiers system:
http://weblogs.asp.net/joelvarty/archive/2008/09/22/linq-architectures-in-3-layer-3-tier-applications.aspx
For more information about entity framework, you could refer to:
http://msdn.microsoft.com/en-us/library/bb399567.aspx
Best regards
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