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2017 (2) TMI 913 - ITAT DELHITDS u/s 192 - short deduction of tax on account of credit tips recovered from the hotel guest to the employees - Held that:- As decided in case of ITC Ltd. vs CIT (TDS), Delhi [2016 (4) TMI 1055 - SUPREME COURT] 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. Assessee cannot be said to be in default of the provisions of Section 192 of the income Tax Act, 1961 as there was no liability of the assessee to deduct TDS under the said provision on the tips recovered from the hotel guests. Thus, it cannot be held to be an assessee in default. Since interest u/s 201(1A) can only be levied only a person who is declared as in assessee is default the question of interest does not arise. Accordingly in the face of the clear statement of law as settled by the Apex Court, the impugned order cannot be upheld. Accordingly, the orders of the AO u/s 201(1)/201(1A) in the respective years are quashed. - Decided in favour of assessee
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