The  assessee has received compensation  from Spiegel Verlag Spiegel Publishers  which she claimed  as exempt under section 4 of the Income tax Act. The AO held that the compensation is taxable as business income under section 28(ii)(e) of the Act  read with Board Circular No.8 /2018 dt. 26 December, 2018 (2019) 306 CTR 21 (St).The AO also held that said compensation is also taxable under section 56(2)(xi) of the Act. CIT(A) affirmed the order of the AO. On appeal the Tribunal held that    as per section 28(ii)(e), the  compensation for termination compensation received by any person on termination or modification of the terms and conditions of any contract relating to his business is taxable under the head Profits and gains of business or profession. Wherever the legislature thought of referring to both business and profession, it has used both the words in the enactment. This means that wherever the word only business is used, it does not include profession. The  reference to business in S. 28(ii)(e) would not amount to reference to profession. On the facts of the case the assessee is a freelance journalist. Relevant clauses of the agreement refer to renewal of the agreement. Since the contract was not renewed, it came to an end. Compensation was received by the assessee by way of mutual agreement between Spiegel Verlag Spiegel Publishers and the assessee. As per S.  2(zh) of the Industrial Relations Code, 2020, non-renewal of any contract does not amount to retrenchment. Therefore the compensation received by the assessee is not taxable under S. 28(ii)(e).In S. 56(2)(xi) the reference is to termination of employment. This section is also not applicable on the facts of the case. Followed G.K. Choksi & Co. v. CIT (2007) 213 CTR  431 / 295 ITR 376 (SC). Accordingly the compensation being capital receipt is not taxable.  (AY.2020-21)