TDS not deductible on tips paid to employees by Hotel out of Tip Collected

CJ International Hotels Ltd. Vs DCIT (ITAT Delhi) Tips for hotel employees included and paid by customers and collected by the employer and disbursed to the employees do not amount to salary or profit in lieu of salary or payment made by or on behalf of the employer, as such provisions requiring deduction of tax at source were not attracted. The issue had been decided in favour of the assessee in the case of ITC v. CIT (2016) 384 ITR 14 (SC) as well as decision of the Tribunal for the immediately preceding assessment year and the name of the assessee was also mentioned therein. FULL TEXT OF ...