29. Now we will take the ground taken by the assessee raising the grievance of the perquisite of Rs. 90,40,880/-.
30. In our opinion, the assessee must succeed on his Ground. There is no dispute about the fact that the assessee being an employer made the valuation of the perquisite provided to Mr. Brian Brown at Rs. 90,40,880/-. The definition of the salary is given in section 17 of the Act and as per the said definition salary includes perquisites. The perquisites in its normal meaning means direct and indirect benefits enjoyed or derived by the employee from his employer as a part of terms of his contract with his employer. As per the view taken by the AO in respect of the perquisites provides to Mr. Brian Brown the assessee has made the payments from time to time and at the time of making the payment the assessee should have deducted the tax as per the provisions of section 192. When the income under the head salary is computed, the valuation of the perquisites forms part of salary and there is no separate identity given for the purpose of section 192. As per section 192(1), as applicable for Assessment year 2002-03, the Income-tax is to be deducted from the `salary’ at the average rate of the Income-tax computed on the basis of the rates in force on the estimated income of the assessee under the head salary. The concept of computation of the average rate for the purpose of deduction of the Income-tax u./s 192 is confined to a salary computed under the head salary and no separate treatment is given in respect of the perquisites to support the case of the AO that, assessee should have deducted the tax at the time of payment made in respect of the perquisites availed by the payee.