Jeyar Consultant & Investment Pvt. Ltd vs Commissioner Of Income Tax,Madras

The Supreme Court addressed the computation of deductions under Section 80HHC(3) of the Income Tax Act, 1961, specifically for businesses not exclusively engaged in exports. The Court clarified that the formula for deduction involves the ratio of export turnover to total turnover, as outlined in the CBDT Circular No. 564. The Court held that the Assessing Officer's denial of deductions based on a lack of relationship with processors was incorrect, thereby allowing the appeal and affirming the entitlement to deductions under Section 80HHC.