M/S MYSODET (P) LTD. vs COMMR.OF INCOME TAX,BANGALORE

The Supreme Court held that under Section 80HHC of the Income Tax Act, a deduction is only available for profits derived from export business, not merely for export sales. The Court affirmed the Karnataka High Court's decision that since the assessee did not earn profits from export sales during the relevant Assessment Year 1990-91, the deduction under Section 80HHC was not applicable. The ruling clarified that Section 80A governs Section 80HHC, emphasizing that deductions cannot exceed the gross total income of the assessee.