Can Penalty be levied in Dividend Stripping transaction

If the loss has been computed properly in accordance with Section 94(7) by taking into consideration, the amount of dividend received then penalty is not leviable.

However, if the loss has been computed and dividend has not been taken into account, then it will be deemed that you have furnished inaccurate particulars of income. Consequently penalty can be imposed U/s 271(1)(c).