It seems that not all browsers show tiff image properly. using showed up properly only in Safari (way to go apple) and it didnt showed properly in Firefox, IE and Chrome. The reason I wanted to do this was to generate thumbnail images for files added to our Cloud server, even though PIL was able to generate the tiff thumbnail it was only visible in Safari. The solution was simple and I used ImageMagic to generate thumbnails for Tiff images in Jpg format ;).
nice -n 10 convert Sample.tiff -thumbnail 100x100 -bordercolor white -border 50 -background white -gravity center -crop 100x100+0+0 +repage -limit memory 32 -limit map 32 -limit disk 500 Sample.jpg