M/S HERO EXPORTS vs COMMR.OF INCOME TAX,LUDHIANA

The Supreme Court addressed the interpretation of Section 80HHC of the Income-tax Act, determining that an exporter of trading goods is entitled to a deduction of profits derived from exports, reduced by direct and indirect costs. The Court held that the assessee's claim to adjust 10% of export incentives against indirect costs was valid, thereby allowing for a larger deduction from gross total income. The judgment clarified the calculation of export profits and upheld the assessee's method of accounting for indirect costs related to export incentives.