The assessee was a hundred per cent. export-oriented unit. With respect to the foreign exchange earned from the exports of goods, instead of converting the exchange immediately to Indian currency, the assessee credited a percentage of the foreign exchange to the Exchange Earners Foreign Currency account. The assessee received gains from the amount credited to the Exchange Earners Foreign Currency account due to an upward revision in the exchange rate at the end of the financial year. The assessee treated the gains on account of foreign currency fluctuations credited to its Exchange Earners Foreign Currency account as income earned in the course its export of goods out of India, i. e., profits of business from exports outside India and claimed deduction under section 80HHC of the Income-tax Act, 1961 thereon. The Assessing Officer disallowed the deduction and the Commissioner (Appeals) affirmed this. The Tribunal set aside the disallowance but the High Court restored the disallowance of the deduction under section 80HHC of the Act. On appeal the Court held  that the profits earned by the assessee due to price fluctuation, in the facts and circumstances of the case, could not be included or treated as derived from the business of export income of the assessee. That as the controversy was whether the profit earned on the foreign exchange fell under business income or income from other sources, the interpretation of clause (baa) of the Explanation in section 80HHC was not attracted to the case on hand.(AY.2000-01, 2001-02)