N. V. BALASUBRAMANIAN, J.

Pursuant to the directions of this court, the Appellate Tribunal has stated a case and referred the following questions of law for the opinion of this court.

"1. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the additional remuneration received by the assessee should (not) be included in the assessment relevant for the assessment year 1970-71 ?

2. Whether, the Appellate Tribunal had materials to hold and was correct in holding that the termination of the assessee's contract with Southern Asbestos Limited affected the structure of the business of the assessee and consequently whether the said sum was in the nature of a capital receipt not liable to tax ?

3. Whether, oil the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the provisions of section 28(ii)(c) of the Income-tax Act, 1961. are not attracted in regard to the sum of Rs. 60, 000 received by the assessee from Southern Asbestos Limited?" *

The second and third questions are interconnected in the sense that the contention of the Revenue is that if the receipt is held to be not a revenue receip