The assessee deducted the tax under section 194IA of the Act and when he came to know that one of the purchaser is non -resident he deducted the tax as per section 195 of the  Act. The  AO levied the penalty  which was confirmed by the CIT (A) , on appeal the Tribunal held that  no penalty under S. 271C is leviable when the Assessee has deducted tax at source under S.  194IA instead of S. 195 when the immovable property is purchased from non resident especially when on pointing out the tax was correctly recovered and deposited. Tribunal also observed that  the moment a person comes to know that he has committed a mistake and being a person of reasonable intelligence and ordinary prudence if he takes the corrective measures to rectify the same immediately, then it cannot be said that he acted deliberately with complete disregard to law. Penalty was deleted . Followed DCIT  v . Sms India Ltd (supra) (2006) 7 SOT 424 ( Mum) (Trib . (ITA No.500/Ind/2018  dt 14-10 -2020)   ( AY. 2015 -16)

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