Section 80HHC of the Income-tax Act, 1961, provided a deduction to Indian companies and resident individuals engaged in the business of export. This section aimed to encourage exports by allowing a deduction from taxable income on profits derived from export activities. The deduction was available on the profits retained for export business, subject to certain conditions and limits. The statutory test required the taxpayer to demonstrate that the profits were derived from the export of goods or merchandise, and not from any other source. The burden of proof was on the taxpayer to substantiate the claim with adequate documentation, such as export invoices and foreign exchange remittance certificates. Although Section 80HHC has been phased out and is no longer applicable for assessment years after 2005-06, it was significant in promoting export-oriented growth during its tenure.