Tribunal held that the seller had not provided any documentary evidence to show that he was a non-resident Indian. Having a local address in the U. S. A., could not be a sufficient evidence to show that the person was a non-resident Indian. The assessees prudently deducted tax at one per cent. under section 194(1A) of the Act. Subsequently, when it was brought to their notice that the seller was a non-resident Indian they immediately deposited the correct amount of tax deducted at source at 20.6 per cent. applicable to the transaction under section 195 of the Act with interest. No mens rea to evade tax was apparent at any stage of the proceedings on the part of the assessee. The assessees under a bona fide belief had deposited tax at one per cent. under section 194(1A) of the Act considering the seller a resident and later, before conclusion of the proceedings before the Assessing Officer, had deposited the correct amount of tax at 20.6 per cent. and applicable interest. Thus they had reasonable cause for the failure. The penalty was liable to be deleted. (AY.2015-16)