Allowing the appeal of the assessee, the Tribunal held that; AO could not show any contemptuous conduct on part of the assessee for non-deduction of tax at source. There could also not be any reason for non-deduction as assessee has made most of the payments to the public sector undertaking. The Hon’ble Supreme Court in the case of CIT v. Bank of Nova Scotia (2016)  380 ITR 550 (SC)  has approved the decision of the Hon’ble Delhi High Court wherein, it has been held that it is necessary to establish ‘contumacious conduct’ on the part of the assessee for failure to deduct tax at source for levy of penalty u/s 271C of the act. In the present case, all the recipients have also furnished a certificate that they have received the payment. Accordingly the penalty was deleted. Referred, Hindustan Coca Cola Beverages Pvt Ltd. v. CIT (2007) 293 ITR 226 (SC) (AY.2009 10, 2010-11)