( 1 ) THIS consolidated reference under section 256 (1) of the Income-tax Act, 1961, arises out of a common order made by the Income-tax Appellate Tribunal Hyderabad, in ITA Nos. 1286 and 1296 of 1975-76. The relevant assessment year is 1968-69. The questions referred to this court are as follows : Questions raised by the Revenue :"1. Whether, on the facts and in the circumstances of the case, the sum of Rs. 47,20,539 received from M/s L. A. Mitchells Ltd. , Manchester, during the assessment year 1968-69 or any part thereof constitutes a revenue receipt or a capital receipt ? 2. Whether the amount of Rs. 47,20,539 is exigible to capital gains tax in the event of holding that the said amount constitutes capital receipt ?"questions raised by the assessee-company :"1. Whether, on the facts and in the circumstances of the case, the sum of Rs. 50,000 paid by the assessee to M/s. Atkins Pvt. Ltd. , Calcutta, could be allowed as business expenditure partaking of the nature of revenue ? 2. Whether, on the facts and in the circumstances of the case, the sum of Rs. 42,212 paid by the assessee to M/s Chemicals and Technical Services, London, could be allowed as business expendit