One of my clients made payments in cash exceeding the limits to co-operative sugar mills. The stock has been duly brought to account and sale and profit have been properly accounted. The Assessing Officer on reassessment proceedings has made disallowance u/s. 40A(3) and also levied penalty u/s. 271(1)(c). Is the levy of penalty u/s. 271(1)(c) valid? If there are any case law please provide the same.