Export deduction reserve under section 80HHC may fund dividend distributions without breaching the proviso, clarifies tax board. Section 80HHC allows a deduction for export-derived profits and requires an equal amount to be debited to profit and loss and credited to a reserve for the assessee's business; the Board clarified that distributing dividends out of that reserve does not infringe the proviso's requirement.
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Export deduction reserve under section 80HHC may fund dividend distributions without breaching the proviso, clarifies tax board.
Section 80HHC allows a deduction for export-derived profits and requires an equal amount to be debited to profit and loss and credited to a reserve for the assessee's business; the Board clarified that distributing dividends out of that reserve does not infringe the proviso's requirement.
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