ORDER :

1. Leave granted.

2. The appellant-Assessee along with three others had promoted a Company, namely, Log in Systems Innovations Private Limited (the Acquiree Company) in the year 1990. The said Company was acquired by one Synergy Credit Corporation Limited (the Acquirer Company). The appellant was offered the position of Executive Director in the Acquirer Company for a gross compensation of Rs. 1,77,200/- per annum. This was by appointment order dated 8th October, 1993. On 15th October, 1993, an Acquisition Agreement was executed between the Acquirer Company and the Acquiree Company on a going concern basis for a total consideration of Rs. 6,00,000/-. On the same date i.e. 15th October, 1993, a Non-Compete Agreement was signed between the appellant-Assessee and the Acquirer Company imposing a restriction on the appellant from carrying on any business of Computer Software development and marketing for a period of five years for which the appellant-Assessee was paid a sum of Rs. 21,00,000/-. The question that arose in the proceedings commencing with the Assessment Order is whether the aforesaid amount of Rs. 21 lakhs is on account of salary or the same is a capital receipt. The