M/S. HINDUSTAN COCA COLA BEVREGE P.LTD. vs COMMISSIONER OF INCOME TAX

The Supreme Court held that the warehousing charges paid by the appellant-assessee to M/s. Pradeep Oil Corporation were subject to tax deduction under Section 194-I of the Income Tax Act, 1961, at 20%, rather than under Section 194C at 2%. The Court affirmed the Assessing Officer's decision to treat the appellant as an 'assessee in default' for short deduction of tax and upheld the levy of interest under Section 201(1A). The appeal was dismissed, confirming the lower courts' rulings on tax liability and interest.