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 engaged in both export and domestic activities. The Court clarified that the formula for calculating deductions, as prescribed by the Central Board of Direct Taxes (CBDT) Circular No. 564, must be applied, which involves the ratio of export turnover to total turnover. The Court upheld the applicability of Section 80HHC(3)(b) for the appellant, who was involved in both export and domestic business, thereby affirming the deduction calculation method outlined in the circular.