Hero Exports,G.T. Road, Ludhiana vs Commissioner Of Income Tax,(Central), ...

The Supreme Court addressed the interpretation of Section 80HHC of the Income-tax Act, determining whether the assessee could adjust 10% of export incentives against indirect costs. The Court held that the assessee was entitled to deduct a proportionate amount of indirect costs attributable to export incentives, thereby allowing for a larger deduction under Section 80HHC. The judgment clarified the calculation of export profits, emphasizing the need for a fair assessment of direct and indirect costs in determining export profits.