Case of Sangeet Seth vs CCIT, HC Delhi Judgement Dated 3rd September 2025. The petitioner, as an erstwhile director of M/s Velvet Apple Hotel Pvt.Ltd., failed to deposit Tax Deducted at Source (TDS) of Rs 6,11,820 for the financial year 2009-10 within the stipulated timeframe. This default led to criminal prosecution proceedings against him under Sections 276B and 278B of the Income Tax Act, 1961. He filed a compounding application to settle the criminal case, but his initial application was rejected. He later filed a second compounding application for the same offense. The Court held that the 5% compounding fee was applicable for subsequent compounding orders, but since the initial application was rejected, there was no subsequent compounding order in effect.