2005 (8) TMI 32 - SCH - Income Tax

Whether the loss suffered in the export of trading goods can be adjusted against the profit obtained from the export of owned goods - s. 80HHC makes it clear that in arriving at the profits earned from export of both self-manufactured goods and trading goods the profits & losses in both the trades have to be taken into consideration. If after such adjustments there is a positive profit the assessee would be entitled to deduction u/s 80HHC(1)

Summary

The Supreme Court allowed the appeal by the Revenue, stating that losses from the export of trading goods can be adjusted against profits from the export of owned goods. The decision overturned the High Court's ruling in favor of the assessee. (Case citation: 2005 (8) TMI 32 - SC)