Thereafter the Company filed an application before the High Court of Bombay under section 66(2) of the Act and the High Court directed the Tribunal to state a case and to refer the following questions of law for its opinion: "(1) Whether the Tribunal erred in law disallowing the amount of Rs. 1,64,899/ as a deduction under section 10 of the Indian Income tax Act, 1922 ? (2) Whether there was any evidence to justify the Tribunal 's finding that the payment of Rs. 1,64,899/ or any part thereof was made in view of and in order to effectuate the agreement entered into between the old shareholders and the new shareholders and that the payment had no commercial purpose behind it ? (3) Whether in any event the sum of Rs. 16,188/ paid to the Managing Director by way of pay in lieu of six months ' notice was allowable as a deduction under section 10 of the Indian Income tax Act, 1922 ?" Accordingly, the Tribunal drew up a statement of the case and referred the above questions.