Sanjiv Khanna, J.

1. HCL Infosystems Limited, formerly known as HCL Limited, a representative assessee of Apollo Domain Computers, GmbH Germany, has filed these two appeals under Section 260A of the Income Tax Act, 1961 (Act, for short) pertaining to Assessment Years 1989-90 and 1990-91.

2. By order dated 9th October, 2002, ITA No. 93/2002 was admitted for hearing on the following substantial question of law:

“Whether the Tribunal was right in holding that the lump sum payment of Rs.1,11,38,650/- to the assessee, by M/s Apollo Domain Computers West Germany, under agreement, dated 11th May, 1987, was liable to tax under the Act ?”

By order dated 19th August, 2008, ITA No. 120/2008 was admitted for hearing on the following substantial question of law:-

“Whether the Income Tax Appellate Tribunal was correct in law in holding that the lump sum payment of Rs.50,51,050/- ($365,500) by the assessee to M/s Apollo Domain Computers, West Germany, under the agreement dated 11.05.1987 was liable to tax under the Income Tax Act, 1961?”

3. As the issue and the substantial questions of law involved in these two appeals are same, they are being disposed of by this common decision. For the sake o