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 for landing and parking charges at airports should be deducted under Section 194-I at the rate of 20%, thereby overruling the conflicting judgments of the Delhi and Madras High Courts. The ruling clarifies the applicable provisions for TDS in the context of international air traffic services.