2001 (10) TMI 72 - HC - Income Tax

Summary

The High Court of Madras ruled in favor of the assessee, stating that the Appellate Tribunal was correct in allowing the deduction under section 80HHC of the Income-tax Act in its entirety. The Tribunal found that the assessee maintained separate accounts for export and domestic sales, and there was no need to disallow any portion of the export earnings. The purpose of the relevant section is to disallow a part of the deduction only when it cannot be clearly linked to exports, which was not the case here.