Hero Exports vs. CIT (Supreme Court)
Though section 80HHC does not provide so, an assessee is entitled, in computing the indirect cost of goods exported, to claim deduction at 10% as indirect expenses incurred for earning export incentives, misc income and brokerage etc. The deduction is allowed on estimate basis and as per the underlying principles of apportionment.
Note: The judgement of the P&H High Court in CIT vs. Hero Exports 292 ITR 571 has been reversed.