The assessee contended that there was a bona fide belief that the payments through the hospital should not deducted under section 194J as CBDT circular has given only after expiry of eight months from the end of the relevant financial year. Now the assessee submitted that prior to the CBDT circular, it was not clear, whether the TDS was required to deducted under section 194J on the payments made to the hospital for which assessee used to get reimbursement from the Insurance Companies. The CBDT circular was challenged before the Delhi High Court and it was only vide order dated 30-9-2010 the said circular has been upheld. However, the High Court has clearly held that the aforesaid circular to the extent that it directs that the failure to deduct tax or after deducting tax failure to pay on all transactions would make the deductor (TPA) to the hospital under section 194J is upheld, but in so far as levy of penalty under section 271C is concerned, that portion of the circular was struck down/set aside. Thus, the portion of the circular that penalty necessarily will be attributed has been negated by the Delhi High Court and hence there cannot be a case of automatic levy of penalty under section 271C. Tribunal held that since the circular has come much after the expiry of the financial year ending on 31-3-2009, the assessee was clearly under a bona fide belief that no TDS is liable to be deducted. Accordingly, it is not a fit case for levy of penalty.  (AY. 2009 -10)