The assessee purchased an immovable property on which TDS obligation arose under S. 194IA of the Act. However, the TDS was not deducted by the assessee. Subsequently, along with the assessment proceedings, a penalty u/s 271C of the Act as also levied by the Revenue authorities.Taking recourse of section 273B of the Act, wherein penalty is not levied if there is a reasonable cause, it was argued that the assessee was not aware of the said section and the compliances to be carried out thereto. Held that even though the general principal is that ignorance of  law is not a valid excuse as per the maxim ignorantia legis neminem excusat, at the same time there is no presumption in law that all persons know all the laws, and more so complex fiscal laws concerning taxing statutes. Further, it was held that the provision was introduced to widen tax base and to check evasion of the taxes as an anti-avoidance measure. Since the seller has declared capital gains in the return of income and paid the taxes in the present case, there is no tax evasion and consequent loss of the government.  Appeal was allowed and penalty was dropped considering this as a reasonable cause since the malice of tax evasion was not established.  Relied on Motilal Padampat Sugar Mills Company Limited v. State of Uttar Pradesh, reported in (1979)118 ITR 326(SC), CIT v. P.S.S. Investments Private Limited   (1977) 107 ITR  1(SC). (AY. 2016-17)