Penalty u/s 271(1)(c)- penalty leviable if tax payable nil

Assessee, An Individual has been assessed to tax and offered NIL tax return showing Income as Rs. 9,000/- as SB Interest.

subsequently in assessement proceedings it was noticed that the assessee was having two houses and assessee offered one for taxation, amount being Rs. 96000/-, below taxable limit

AO initiated penalty proceedings u/s 271(1)(c), is the penalty proceedings valid?

Pls answer with the help of relevent case law or provisions and sub provisions.....!!!!!

Thanks in Advance