{"id":63754,"date":"2026-08-04T18:32:27","date_gmt":"2026-08-04T13:02:27","guid":{"rendered":"https:\/\/itatonline.org\/digest\/ito-v-magic-software-p-ltd-2025-124-itr-34-173-taxmann-com-59-delhitrib-2\/"},"modified":"2026-08-04T18:32:27","modified_gmt":"2026-08-04T13:02:27","slug":"ito-v-magic-software-p-ltd-2025-124-itr-34-173-taxmann-com-59-delhitrib-2","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/ito-v-magic-software-p-ltd-2025-124-itr-34-173-taxmann-com-59-delhitrib-2\/","title":{"rendered":"ITO v. Magic Software (P.) Ltd. (2025) 124 ITR 34 \/ 173 taxmann.com 59 (Delhi)(Trib.)"},"content":{"rendered":"<p>The Tribunal held that the assessee had established that borrowed funds were not utilised for investments yielding exempt dividend income and, therefore, the deletion of interest disallowance under Rule 8D(2)(ii) by the Commissioner (Appeals) was justified. However, as the assessee failed to establish that no expenditure had been incurred for managing the investments, the administrative disallowance computed under Rule 8D(2)(iii) was rightly sustained. <strong>(<\/strong>AY. 2011-12).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>S. 14A : Disallowance of expenditure-Exempt income-Borrowed funds not utilised for investments-Interest disallowance deleted-Administrative expenditure sustained. [R. 8D(2)(ii), (iii)]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-63754","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gAi","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63754","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=63754"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63754\/revisions"}],"predecessor-version":[{"id":63755,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63754\/revisions\/63755"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=63754"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=63754"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=63754"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}