Assessee had received right of redemption in respect of stock appreciation rights (SARs) of a company during relevant previous year when he was an employee of said company and he redeemed SARs during year 1998-99 . Assessing Officer held  that amount received on redemption of SARs as an employee of company, there being an employer-employee relationship subsisting at relevant time, be treated as taxable income under head ‘income from salaries’ .  As per sub-clause (iiia) of section 17(2), a perquisite would also include value of any specified security allotted or transferred by any person free of cost or at concessional rate to an individual who is or has been in employment of that person.   Order of the Assessing Officer was affirmed by the Tribunal . On appeal the Court held that since said sub-clause was effective from 1-4-2000 and assessee had received SARs during assessment year 1998-99 which was prior to insertion of sub-clause (iiia) to section 17(2), said amount could not have been treated as a perquisite to be included as income under head ‘salaries’ and taxed accordingly (AY. 1998-99)