Case Law Details
Since TIPS were received from the customers and not from the employer these would be chargeable in the hands of the employee as income from other sources and section 192 would not get attracted on the facts of the case.
On analysis of section 15 that it would be evident that for the said section to apply there should be a vested right in an employee to claim any salary from an employer or former employer whether due or not if paid; or paid or allowed, though not due.
Relevant Extract of the Judgment
All these appeals have been filed by the assessee assailing the correctness of the order dated 03.03.2015 of CIT(A)-41, New Delhi pertaining to 2004-05 to 2007-08 assessment years on identical issues accordingly all these appeals are being decided by a common order.
2. Ld.AR inviting attention to the grounds raised submitted that the assessee has been held to be in default for the short deduction of tax on account of credit tips recovered from the hotel guest to the employees. Inviting attention to the impugned order in 2004-05 AY which is identical to the consolidated order passed in 2005-06 AY it was submitted that the appeal of the assessee was dismissed by the CIT(A), relying upon the decision of Jurisdictional High Court order dated 11.05.2011 in the case of CIT vs ITC Ltd. and C.J. International Hotel Ltd. The said decision, it was submitted is no longer good law in view of the decision of the Apex Court in the case of ITC Ltd. vs CIT 286 CTR 126 (SC) which has been followed by the ITAT in the case of the assessee itself. Filing a copy of the aforesaid order dated 12.07.2016 in ITA No. 401/Del/201 5 for 2011-12 AY it was submitted the order of AO u/s 201(1)/201(1A) had been quashed by the ITAT. A prayer for a similar order in the present appeals was prayed for.
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