Sangeet Seth v. Chief Commissioner of Income Tax and Ors.
Case brief
What is this about?
Sangeet Seth v. Chief Commissioner of Income Tax & Ors., W.P.(C) 16569/2023 (& CM APPL.66783/2023), High Court of Delhi, decided 03.09.2025 (coram V. Kameswar Rao & Vinod Kumar JJ; authored by V. Kameswar Rao J.). TDS-default compounding under S.279(2) Income Tax Act, 1961: the 5% monthly compounding rate is chargeable on a subsequent application only where the earlier offence was actually compounded (order passed and conditions complied with); the first application having been rejected on 16.02.2016 (non-payment of Rs. 5,70,047/-), the 3% rate of the Letter of Acceptance dated 29.01.2018 prevails and the demand letter dated 08.02.2019 (@5%; Rs. 8,22,133/-; balance Rs. 3,32,154/-) is set aside. Follows Maspar Industries, (2023) 333 CTR (Del) 10 (Clause 12.1, CBDT Compounding Guidelines/Direct Tax Law, 2014). Statute references in text: S.279(2); u/s 276B & 278B; S.201(1A). Outcome: disposed; pending CM dismissed as infructuous. Keywords: compounding of offence; TDS; Column 10 Annexure-A; Velvet Apple Hotel Pvt. Ltd.; CC No. 537821 of 2016; ACCM (Spl. Acts) Tis Hazari.