https://www.taxtmi.com/caselaws?id=2891 HC held that profits "derived from exports" under s.80HHC must pass a nexus test; the AO must first compute business profits under heads Profits & Gains of Business/Profession (ss.28-44) excluding income under ss.56-57, then deduct specified amounts under s.80HHC(3). Interest on surplus funds parked in FDs and interest on deposits for bank credit lack immediate nexus with export business and are income from other sources, excluded from s.80HHC. "Interest" in clause (baa) means net interest (gross less expenditure incurred). If AO classifies interest as business income, deduction of net interest is permissible. All questions answered affirmatively. en-us Fri, 12 Jan 2007 00:00:00 +0530 Tue, 16 Sep 2025 15:57:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=2891 HC held that profits "derived from exports" under s.80HHC must pass a nexus test; the AO must first compute business profits under heads Profits & Gains of Business/Profession (ss.28-44) excluding income under ss.56-57, then deduct specified amounts under s.80HHC(3). Interest on surplus funds parked in FDs and interest on deposits for bank credit lack immediate nexus with export business and are income from other sources, excluded from s.80HHC. "Interest" in clause (baa) means net interest (gross less expenditure incurred). If AO classifies interest as business income, deduction of net interest is permissible. All questions answered affirmatively. Case-Laws Income Tax Fri, 12 Jan 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=2891