Dismissing the appeal of the revenue the Court held that, non-compete agreement incorporated restrictive covenant on right of assessed to carry on his activity of development of software. It might not alter structure of his activity, in sense that he could carry on same activity in organization in which he had small stake, but it certainly impaired carrying on of his activity to that extent it was loss of source of income for him and it was of enduring nature, as contrasted with transitory or ephemeral loss. Non-Competition Agreement was genuine and payment made thereunder was indeed non-compete fee. (AY. 1995-96)