Delhi HC Quashes 5% Compounding Charges in Velvet Apple Hotel TDS Case

Sangeet Seth Vs Chief Commissioner of Income Tax And Ors. (Delhi High Court) Background of the Dispute The petitioner, Sangeet Seth, was an erstwhile director of a company, M/s Velvet Apple Hotel Pvt. Ltd., which is now under liquidation. The company had defaulted on depositing Tax Deducted at Source (TDS) amounting to ₹6,11,820 for the financial year 2009-10 within the prescribed time. Although the amount was deposited after a delay of a few months, the default led to the initiation of criminal prosecution proceedings against the petitioner under Sections 276B and 278B of the Income Tax Act...