https://www.taxtmi.com/caselaws?id=205952 The Court held that tips collected and paid to employees constituted "profits in lieu of salary" under the Income Tax Act. While the assessees were obligated to deduct tax at source on tips, their bonafide belief that tips were not part of salary exempted them from penalties under Section 201. However, they were liable to pay interest under Section 201(1A) for the delayed tax deduction. The Court ruled in favor of the assessees, allowing the appeals without costs. en-us Wed, 11 May 2011 00:00:00 +0530 Sat, 15 Dec 2012 17:59:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=205952 The Court held that tips collected and paid to employees constituted "profits in lieu of salary" under the Income Tax Act. While the assessees were obligated to deduct tax at source on tips, their bonafide belief that tips were not part of salary exempted them from penalties under Section 201. However, they were liable to pay interest under Section 201(1A) for the delayed tax deduction. The Court ruled in favor of the assessees, allowing the appeals without costs. Case-Laws Income Tax Wed, 11 May 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=205952