CIT v. International Data Management Ltd.

261 ITR 177High Court2003#6936 most cited

What is CIT v. International Data Management Ltd. authority for?

Income from service charges, maintenance revenue, and lease rent can be considered as derived from the main business activity of the assessee, provided there is a direct nexus. Such income may not be treated as income derived from an industrial undertaking for the purpose of Section 80-I.

16

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2017 to 2025.

Also referred to as

CIT vs International Data Management Ltd · 261 ITR 177 · Section 80-I · eligible business · industrial undertaking · service charges · maintenance revenue · lease rent · direct nexus

Sections most often in play

Section 14ASection 35Section 35(2AB)Section 80-ISection 80-ICSection 80IBSection 8D

Issues it is cited on

section 80absection 80hsection 80hhsection 80hhcdeduction under section 80iasection 251(2)eligible businesssection 80asection 80isection 80iagross total incomesection 251

Judgments citing CIT v. International Data Management Ltd.

M/S. Ashok Leyland Ltd., Chennai vs. DCIT, Ncc-8(1), Ltu-II, Chennai

In the result, the appeal of the as In the result, the appeal of the assessee is partly allowed

ITA 2377/CHNY/2024[2017-18]Status: DisposedITAT Chennai12 Feb 2025AY 2017-18

Bench: Shri Aby T. Varkey & Shri Amitabh Shukla

For Appellant: Mr.R. VijayaraghavanFor Respondent: Mr.Nathala Ravi Babu, CIT
Section 14ASection 35

…’b We further note that, the Hon’ble Bombay High Court in the case of le Bombay High Court in the case of CIT vs International Data Management Limited (261 ITR CIT vs International Data Management Limited (261 ITR CIT vs International Data Management Limited (261 ITR 177) has also held that, where the assessee derives income from rendering service also held that, where the assessee derives income from rendering service also held that, where the assessee derives income from rendering service and maintenance facilities to its clients in relation to the product supplied, and maintenance facilities to its clients in…

Inox India Limited, Vadodara vs. The ACIT, Circle-1(2) Now Circle-1(1)(1), Vadodara

In the result, the appeal of the assessee is partly allowed for assessment year 2000-2001 and other years before us, on the above two issues which were argued before us

ITA 524/AHD/2023[2004-05]Status: DisposedITAT Ahmedabad12 Nov 2024AY 2004-05

Bench: Dr. Brr Kumar & Shri Siddhartha Nautiyal

For Appellant: Shri Milin Mehta, A.RFor Respondent: Shri Waghe Prasad Rao, Sr. DR
Section 251Section 251(2)Section 801A(9)Section 801HSection 80H

…roceeded to discuss law. This litigation could have been avoided if the parties had invited attention to basic facts." 9. A similar view was taken by the Hon'ble High Court of Bombay in the case of CIT vs. International Data Management Ltd, reported in (2003) 261 ITR 177 (Bom). The relevant finding of the Hon'ble High Court reads as under:- "As regards deduction in respect of income from service charges, maintenance revenue and lease rent, there was a direct nexus between these receipts and the main business activity of the assessee. This was a finding of fact also recorded by the Tribunal. There was no reason to…

Inox India Limited, Vadodara vs. The ACIT, Circle-1(2) Now Circle-1(1)(1), Vadodara

In the result, the appeal of the assessee is partly allowed for assessment year 2000-2001 and other years before us, on the above two issues which were argued before us

ITA 523/AHD/2023[2003-04]Status: DisposedITAT Ahmedabad12 Nov 2024AY 2003-04

Bench: Dr. Brr Kumar & Shri Siddhartha Nautiyal

For Appellant: Shri Milin Mehta, A.RFor Respondent: Shri Waghe Prasad Rao, Sr. DR
Section 251Section 251(2)Section 801A(9)Section 801HSection 80H

…roceeded to discuss law. This litigation could have been avoided if the parties had invited attention to basic facts." 9. A similar view was taken by the Hon'ble High Court of Bombay in the case of CIT vs. International Data Management Ltd, reported in (2003) 261 ITR 177 (Bom). The relevant finding of the Hon'ble High Court reads as under:- "As regards deduction in respect of income from service charges, maintenance revenue and lease rent, there was a direct nexus between these receipts and the main business activity of the assessee. This was a finding of fact also recorded by the Tribunal. There was no reason to…

Inox India Limited, Vadodara vs. The ACIT, Circle-1(2) Now Circle- 1(1)(1), Vadodara

In the result, the appeal of the assessee is partly allowed for assessment year 2000-2001 and other years before us, on the above two issues which were argued before us

ITA 522/AHD/2023[2002-03]Status: DisposedITAT Ahmedabad12 Nov 2024AY 2002-03

Bench: Dr. Brr Kumar & Shri Siddhartha Nautiyal

For Appellant: Shri Milin Mehta, A.RFor Respondent: Shri Waghe Prasad Rao, Sr. DR
Section 251Section 251(2)Section 801A(9)Section 801HSection 80H

…roceeded to discuss law. This litigation could have been avoided if the parties had invited attention to basic facts." 9. A similar view was taken by the Hon'ble High Court of Bombay in the case of CIT vs. International Data Management Ltd, reported in (2003) 261 ITR 177 (Bom). The relevant finding of the Hon'ble High Court reads as under:- "As regards deduction in respect of income from service charges, maintenance revenue and lease rent, there was a direct nexus between these receipts and the main business activity of the assessee. This was a finding of fact also recorded by the Tribunal. There was no reason to…

Inox India Limited, Vadodara vs. The DCIT, Circle-1 Now Circle 1(1)(1), Vadodara

In the result, the appeal of the assessee is partly allowed for assessment year 2000-2001 and other years before us, on the above two issues which were argued before us

ITA 521/AHD/2023[2000-01]Status: DisposedITAT Ahmedabad12 Nov 2024AY 2000-01

Bench: Dr. Brr Kumar & Shri Siddhartha Nautiyal

For Appellant: Shri Milin Mehta, A.RFor Respondent: Shri Waghe Prasad Rao, Sr. DR
Section 251Section 251(2)Section 801A(9)Section 801HSection 80H

…roceeded to discuss law. This litigation could have been avoided if the parties had invited attention to basic facts." 9. A similar view was taken by the Hon'ble High Court of Bombay in the case of CIT vs. International Data Management Ltd, reported in (2003) 261 ITR 177 (Bom). The relevant finding of the Hon'ble High Court reads as under:- "As regards deduction in respect of income from service charges, maintenance revenue and lease rent, there was a direct nexus between these receipts and the main business activity of the assessee. This was a finding of fact also recorded by the Tribunal. There was no reason to…

M/S. Xalted Information Systems Private Limited, Bengaluru vs. The Deputy Commissioner of Income Tax, Circle- 7(1)(2), Bangalore

In the result, the appeal by the Assessee is allowed

ITA 461/BANG/2020[2013-14]Status: DisposedITAT Bangalore14 Oct 2020AY 2013-14

Bench: Shri N.V. Vasudevan & Shri B R Baskaranassessment Year : 2013-14

For Appellant: Shri S. Parthasarathi, AdvocateFor Respondent: Smt. R. Premi, Addl. CIT(DR)(ITAT), Bengaluru
Section 143(3)Section 263Section 80Section 80I

…nufacturer on this count, is the income derived from the business itself and therefore, the same is eligible for deduction under section 80-IB of the Income Tax Act. The Hon’ble Bombay High Court in the case of CIT v. International Data Management Ltd. (2003) 261 ITR 177 (Bom) had to deal with a case regarding entitlement of deduction under section 80-IC for income, received on account of service and maintenance charge. In the context, the Bombay High Court held that the income received by the assessee which rendered service and maintenance facilities for the clients, has a direct nexus with the main business act…

M/S Xalted Information Systems Private Limited, Bangalore vs. The Income Tax Officer Ward-7(1)(2), Bangalore

In the result, the appeal by the assessee is allowed

ITA 821/BANG/2019[2014-15]Status: DisposedITAT Bangalore26 Feb 2020AY 2014-15

Bench: Shri N.V. Vasudevan & Shri A.K. Garodia

For Appellant: Shri S. Parthasarathi, AdvocateFor Respondent: Shri Manjeet Singh, Addl. CIT(DR)(ITAT), Bengaluru
Section 80Section 80I

…nufacturer on this count, is the income derived from the business itself and therefore, the same is eligible for deduction under section 80-IB of the Income Tax Act. The Hon’ble Bombay High Court in the case of CIT v. International Data Management Ltd. (2003) 261 ITR 177 (Bom) had to deal with a case regarding entitlement of deduction under section 80-IC for income, received on account of service and maintenance charge. In the context, the Bombay High Court held that the income received by the assessee which rendered service and maintenance facilities for the clients, has a direct nexus with the main business act…

Electronic Instrumentation & Control Private Limited, Ahmedabad vs. The ACIT, Circle-4, Ahmedabad

In the result, these grounds of assessee’s appeal are partly allowed

ITA 2837/AHD/2014[2011-12]Status: DisposedITAT Ahmedabad14 Oct 2019AY 2011-12

Bench: Shri Waseem Ahmed& Ms. Madhumita Roy

For Appellant: RespondentbyFor Respondent: Shri S. K. Dev, Sr.D.R
Section 143(1)Section 143(2)Section 143(3)Section 80Section 80I

…3 Electronic Instrumentations & Control Pvt. Ltd. vs. ACIT Asst.Years –2011-12, 2009-10 & 2010-11 in Tax Appeal No.27/2003 which, in fact, followed the judgment passed by the Bombay High Court in the matter of International Data Management Limited reported in 261 ITR 177. With all his fairness, the Learned Counsel took us to the written submission made before us on this fact of the matter that the prevailing practice of the business is this that while the Electric Panels are supplied for industrial use, the installation and commissioning of the same becomes the responsibility of the assessee and as an evident he…

M/S. Fag Bearings India Ltd., Baroda vs. The ACIT, Circle-1(2), Baroda

ITA 799/AHD/2016[2008-09]Status: DisposedITAT Ahmedabad30 Apr 2019AY 2008-09

Bench: Shri Waseem Ahmed & Ms Madhumita Roy1. आयकर अपील सं./Ita No.4565/Ahd/2007 – Ay 2004-05 2. आयकर अपील सं./Ita No.1529/Ahd/2009 – Ay 2005-06 3. आयकर अपील सं./Ita No.1256/Ahd/2012 – Ay 2007-08 4. आयकर अपील सं./It(Tp)A No.1941/Ahd/2012 – Ay 2008-09 5. आयकर अपील सं./It(Tp)A No.551/Ahd/2016 – Ay 2009-10

For Appellant: Shri Milin Mehta, A.R
Section 36Section 36(1)(iv)Section 40A(2)(b)Section 40A(9)Section 92C

…आयकर अपील"य अ"धकरण, अहमदाबाद "यायपीठ ‘डी’, अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL, ‘’D’’ BENCH, AHMEDABAD BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER And MS MADHUMITA ROY, JUDICIAL MEMBER 1. आयकर अपील सं./ITA No.4565/AHD/2007 – AY 2004-05 2. आयकर अपील सं./ITA No.1529/AHD/2009 – AY 2005-06 3. आयकर अपील सं./ITA No.1256/AHD/2012 – AY 2007-08 4. आयकर अपील सं./IT(TP)A No.1941/AHD/2012 – AY 2008-09 5. आयकर अपील सं./IT(TP)A No.551/AHD/2016 – AY 2009-10 1-4. A.C.I.T/DCIT 1-4. M/s FAG Bearing India Ltd., Circle-1(2), At & PO. Maneja, Vs. Baroda-390010. Baroda. PAN: AAACF 3357 Q (Applicant) (Respondent) And…

The ACIT, Circle-5, Ahmedabad vs. M/S. Nabros Pharma Ltd., Ahmedabad

ITA 788/AHD/2016[2008-09]Status: DisposedITAT Ahmedabad30 Apr 2019AY 2008-09

Bench: Shri Waseem Ahmed & Ms Madhumita Roy1. आयकर अपील सं./Ita No.4565/Ahd/2007 – Ay 2004-05 2. आयकर अपील सं./Ita No.1529/Ahd/2009 – Ay 2005-06 3. आयकर अपील सं./Ita No.1256/Ahd/2012 – Ay 2007-08 4. आयकर अपील सं./It(Tp)A No.1941/Ahd/2012 – Ay 2008-09 5. आयकर अपील सं./It(Tp)A No.551/Ahd/2016 – Ay 2009-10

For Appellant: Shri Milin Mehta, A.R
Section 36Section 36(1)(iv)Section 40A(2)(b)Section 40A(9)Section 92C

…आयकर अपील"य अ"धकरण, अहमदाबाद "यायपीठ ‘डी’, अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL, ‘’D’’ BENCH, AHMEDABAD BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER And MS MADHUMITA ROY, JUDICIAL MEMBER 1. आयकर अपील सं./ITA No.4565/AHD/2007 – AY 2004-05 2. आयकर अपील सं./ITA No.1529/AHD/2009 – AY 2005-06 3. आयकर अपील सं./ITA No.1256/AHD/2012 – AY 2007-08 4. आयकर अपील सं./IT(TP)A No.1941/AHD/2012 – AY 2008-09 5. आयकर अपील सं./IT(TP)A No.551/AHD/2016 – AY 2009-10 1-4. A.C.I.T/DCIT 1-4. M/s FAG Bearing India Ltd., Circle-1(2), At & PO. Maneja, Vs. Baroda-390010. Baroda. PAN: AAACF 3357 Q (Applicant) (Respondent) And…

The ACIT, Circle-1(2), Baroda vs. M/S. Fag Bearings India Ltd., Vadodara

ITA 551/AHD/2016[2009-10]Status: DisposedITAT Ahmedabad30 Apr 2019AY 2009-10

Bench: Shri Waseem Ahmed & Ms Madhumita Roy1. आयकर अपील सं./Ita No.4565/Ahd/2007 – Ay 2004-05 2. आयकर अपील सं./Ita No.1529/Ahd/2009 – Ay 2005-06 3. आयकर अपील सं./Ita No.1256/Ahd/2012 – Ay 2007-08 4. आयकर अपील सं./It(Tp)A No.1941/Ahd/2012 – Ay 2008-09 5. आयकर अपील सं./It(Tp)A No.551/Ahd/2016 – Ay 2009-10

For Appellant: Shri Milin Mehta, A.R
Section 36Section 36(1)(iv)Section 40A(2)(b)Section 40A(9)Section 92C

…आयकर अपील"य अ"धकरण, अहमदाबाद "यायपीठ ‘डी’, अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL, ‘’D’’ BENCH, AHMEDABAD BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER And MS MADHUMITA ROY, JUDICIAL MEMBER 1. आयकर अपील सं./ITA No.4565/AHD/2007 – AY 2004-05 2. आयकर अपील सं./ITA No.1529/AHD/2009 – AY 2005-06 3. आयकर अपील सं./ITA No.1256/AHD/2012 – AY 2007-08 4. आयकर अपील सं./IT(TP)A No.1941/AHD/2012 – AY 2008-09 5. आयकर अपील सं./IT(TP)A No.551/AHD/2016 – AY 2009-10 1-4. A.C.I.T/DCIT 1-4. M/s FAG Bearing India Ltd., Circle-1(2), At & PO. Maneja, Vs. Baroda-390010. Baroda. PAN: AAACF 3357 Q (Applicant) (Respondent) And…

M/S. Fag Bearings India Ltd., Baroda vs. The ACIT., Circle-1(2), (Tpo), Baroda

ITA 2061/AHD/2012[2008-09]Status: DisposedITAT Ahmedabad30 Apr 2019AY 2008-09

Bench: Shri Waseem Ahmed & Ms Madhumita Roy1. आयकर अपील सं./Ita No.4565/Ahd/2007 – Ay 2004-05 2. आयकर अपील सं./Ita No.1529/Ahd/2009 – Ay 2005-06 3. आयकर अपील सं./Ita No.1256/Ahd/2012 – Ay 2007-08 4. आयकर अपील सं./It(Tp)A No.1941/Ahd/2012 – Ay 2008-09 5. आयकर अपील सं./It(Tp)A No.551/Ahd/2016 – Ay 2009-10

For Appellant: Shri Milin Mehta, A.R
Section 36Section 36(1)(iv)Section 40A(2)(b)Section 40A(9)Section 92C

…आयकर अपील"य अ"धकरण, अहमदाबाद "यायपीठ ‘डी’, अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL, ‘’D’’ BENCH, AHMEDABAD BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER And MS MADHUMITA ROY, JUDICIAL MEMBER 1. आयकर अपील सं./ITA No.4565/AHD/2007 – AY 2004-05 2. आयकर अपील सं./ITA No.1529/AHD/2009 – AY 2005-06 3. आयकर अपील सं./ITA No.1256/AHD/2012 – AY 2007-08 4. आयकर अपील सं./IT(TP)A No.1941/AHD/2012 – AY 2008-09 5. आयकर अपील सं./IT(TP)A No.551/AHD/2016 – AY 2009-10 1-4. A.C.I.T/DCIT 1-4. M/s FAG Bearing India Ltd., Circle-1(2), At & PO. Maneja, Vs. Baroda-390010. Baroda. PAN: AAACF 3357 Q (Applicant) (Respondent) And…

M/S. Fag Bearings India Ltd., Baroda vs. The Dy.CIT., Circle-1(2), Baroda

ITA 1197/AHD/2012[2007-08]Status: DisposedITAT Ahmedabad30 Apr 2019AY 2007-08

Bench: Shri Waseem Ahmed & Ms Madhumita Roy1. आयकर अपील सं./Ita No.4565/Ahd/2007 – Ay 2004-05 2. आयकर अपील सं./Ita No.1529/Ahd/2009 – Ay 2005-06 3. आयकर अपील सं./Ita No.1256/Ahd/2012 – Ay 2007-08 4. आयकर अपील सं./It(Tp)A No.1941/Ahd/2012 – Ay 2008-09 5. आयकर अपील सं./It(Tp)A No.551/Ahd/2016 – Ay 2009-10

For Appellant: Shri Milin Mehta, A.R
Section 36Section 36(1)(iv)Section 40A(2)(b)Section 40A(9)Section 92C

…आयकर अपील"य अ"धकरण, अहमदाबाद "यायपीठ ‘डी’, अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL, ‘’D’’ BENCH, AHMEDABAD BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER And MS MADHUMITA ROY, JUDICIAL MEMBER 1. आयकर अपील सं./ITA No.4565/AHD/2007 – AY 2004-05 2. आयकर अपील सं./ITA No.1529/AHD/2009 – AY 2005-06 3. आयकर अपील सं./ITA No.1256/AHD/2012 – AY 2007-08 4. आयकर अपील सं./IT(TP)A No.1941/AHD/2012 – AY 2008-09 5. आयकर अपील सं./IT(TP)A No.551/AHD/2016 – AY 2009-10 1-4. A.C.I.T/DCIT 1-4. M/s FAG Bearing India Ltd., Circle-1(2), At & PO. Maneja, Vs. Baroda-390010. Baroda. PAN: AAACF 3357 Q (Applicant) (Respondent) And…

M/S. Fag Bearings India Ltd., Baroda vs. The CIT-I, Baroda

ITA 1453/AHD/2011[2005-06]Status: DisposedITAT Ahmedabad30 Apr 2019AY 2005-06

Bench: Shri Waseem Ahmed & Ms Madhumita Roy1. आयकर अपील सं./Ita No.4565/Ahd/2007 – Ay 2004-05 2. आयकर अपील सं./Ita No.1529/Ahd/2009 – Ay 2005-06 3. आयकर अपील सं./Ita No.1256/Ahd/2012 – Ay 2007-08 4. आयकर अपील सं./It(Tp)A No.1941/Ahd/2012 – Ay 2008-09 5. आयकर अपील सं./It(Tp)A No.551/Ahd/2016 – Ay 2009-10

For Appellant: Shri Milin Mehta, A.R
Section 36Section 36(1)(iv)Section 40A(2)(b)Section 40A(9)Section 92C

…आयकर अपील"य अ"धकरण, अहमदाबाद "यायपीठ ‘डी’, अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL, ‘’D’’ BENCH, AHMEDABAD BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER And MS MADHUMITA ROY, JUDICIAL MEMBER 1. आयकर अपील सं./ITA No.4565/AHD/2007 – AY 2004-05 2. आयकर अपील सं./ITA No.1529/AHD/2009 – AY 2005-06 3. आयकर अपील सं./ITA No.1256/AHD/2012 – AY 2007-08 4. आयकर अपील सं./IT(TP)A No.1941/AHD/2012 – AY 2008-09 5. आयकर अपील सं./IT(TP)A No.551/AHD/2016 – AY 2009-10 1-4. A.C.I.T/DCIT 1-4. M/s FAG Bearing India Ltd., Circle-1(2), At & PO. Maneja, Vs. Baroda-390010. Baroda. PAN: AAACF 3357 Q (Applicant) (Respondent) And…

Saraswati Dynamics Pvt. Ltd., Roorkee vs. ACIT, Haridwar

In the result, both the appeals of the assessee are allowed

ITA 4376/DEL/2011[2007-08]Status: DisposedITAT Delhi26 May 2017AY 2007-08

Bench: Shri Before Shri R.K. Pandabefore Shri Before Shri R.K. Pandar.K. Panda & R.K. Panda & And & Ms. Suchitra Kamble Ms. Suchitra Kamblems. Suchitra Kamble Ms. Suchitra Kamble

For Appellant: Dr. Rakesh Gupta and Shri Somil Agarwal, AdvocatesFor Respondent: Shri S.S. Rana, CIT-DR
Section 80I

…commissioning and erection of cooling system and consequently, the assessee is eligible for claim of deduction u/s 80IB/80IC of the Act. Referring to the decision of Hon’ble Bombay High Court in the case of CIT Vs. International Data Management Ltd. – [2003] 261 ITR 177, he submitted that Hon’ble Bombay High Court in the said decision has held that where the assessee derived income as it rendered service and maintenance facility to its clients for which it charged service and maintenance charges, there was a direct nexus between the receipts from rendering services and maintenance facility to its clients and lea…

M/S Saraswati Dynamics, Roorkee vs. Addl. CIT, Haridwar

In the result, both the appeals of the assessee are allowed

ITA 1563/DEL/2011[2006-07]Status: DisposedITAT Delhi26 May 2017AY 2006-07

Bench: Shri Before Shri R.K. Pandabefore Shri Before Shri R.K. Pandar.K. Panda & R.K. Panda & And & Ms. Suchitra Kamble Ms. Suchitra Kamblems. Suchitra Kamble Ms. Suchitra Kamble

For Appellant: Dr. Rakesh Gupta and Shri Somil Agarwal, AdvocatesFor Respondent: Shri S.S. Rana, CIT-DR
Section 80I

…commissioning and erection of cooling system and consequently, the assessee is eligible for claim of deduction u/s 80IB/80IC of the Act. Referring to the decision of Hon’ble Bombay High Court in the case of CIT Vs. International Data Management Ltd. – [2003] 261 ITR 177, he submitted that Hon’ble Bombay High Court in the said decision has held that where the assessee derived income as it rendered service and maintenance facility to its clients for which it charged service and maintenance charges, there was a direct nexus between the receipts from rendering services and maintenance facility to its clients and lea…

CIT v. International Data Management Ltd. (261 ITR 177) — Cited in 16 Judgments | BharatTax