M/S. Hindustan Coca Cola Beverage Pvt. ... vs Commissioner Of Income Tax

The Supreme Court addressed the issue of tax deduction at source under the Income Tax Act, 1961, specifically Sections 194C and 194I. The Court held that warehousing charges paid by the appellant were to be treated as contractual payments under Section 194C, thus requiring a tax deduction of 2%, rather than the 20% applicable to rent under Section 194I. The Court ruled in favor of the appellant, overturning the lower courts' decisions that deemed the appellant an 'assessee in default' for short deduction of tax.