Assessee filed its return of income and AO made an addition by excluding gross interest receipts assessed under the head ‘profits and gains of business’ which has a nexus with the export activity which had been netted off by the assessee. High Court  held that the conversion of a portion of the sale proceeds as fixed deposits was done by the bank themselves and not on volition of the assessee. Therefore, the transaction was connected and closely linked with the business activity of the assessee and interest income assessed as business income is to be included for the purpose of S. 80HHC and assessee appeal was allowed. (AY.2004-05)