Non applicability of penalty and prosecution of tds

As per the provisions of Section 40(a)(ia) of the Income Tax Act 1961, 30% of the expense is disallowed in case where Tax at Source is not deducted; Tax is paid on the disallowed expense by the deductor and deductee also pays Tax on full amount.

Since there is no loss to the revenue in above said case the provisions of Sections 271C (Penalty) and 276B (Prosecution) should not be applicable?