No penalty under Section 271C is leviable when the Assessee has deducted tax at source under section 194IA instead of Section 195 when the immovable property is purchased from non resident especially when on pointing out the tax was correctly recovered and deposited.

What is important is the fact 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.

The Assessee met the seller firat time at the time of registration and only PAN of seller was obtained which doesnot bear the residential status or address. Further having a local address abroad mentioned in dees is not an conclusive evidence that the seller is non resident. Therefore there was a reasonable cause.