M/S Japan Airlines Co.Ltd vs Commr.Of Income Tax,New Delhi

The Supreme Court addressed the issue of tax deduction at source (TDS) for foreign airlines, specifically whether TDS should be deducted under Section 194-C or Section 194-I of the Income Tax Act, 1961. The Court held that the TDS should be deducted under Section 194-I at the rate of 20%, affirming the Delhi High Court's ruling and resolving the conflict with the Madras High Court's contrary decision. The judgment clarifies the applicability of TDS provisions for landing and parking charges levied by the Airports Authority of India.