TDS Default | Higher Compounding Fees on Second Plea Not Applicable If First Application Was Rejected: Delhi High Court

Important judgement has been delivered by the Delhi High Court on 03 September 2025, where the bench comprising Justice V. Kameswar Rao and Justice Vinod Kumar ruled in favor of the petitioner Sangeet Seth, in a writ petition filed under W\.P.(C) 16569/2023. The case centered around whether the Income Tax Department could legally demand 5% compounding charges under Section 279(2) of the Income Tax Act, 1961, when only 3% was…