Taxation Law: AIBE Previous Year Question

I recently stumbled upon an AIBE question from previous years and I am still trying to wrap my head around it. The question asked for the correct method of imposing penalty under the Income-tax Act, 1961. Specifically, it mentioned a situation where the Assessing Officer (AO) found that the taxpayer had made a false statement in her income tax return, but she did not intend to evade tax. The question then listed various sections under the Act and asked us to determine the correct method of imposing penalty.

Kya main confusion mat kar raha hoon? The correct approach here is to identify the relevant sections and then apply the principles of taxation law. In this case, Section 271 of the Income-tax Act, 1961, deals with penalty for failure to furnish return of income, reportable person not reporting, concealment of particulars etc. But, we need to find out which section deals with penalty for false statement.