Inbound links or incoming links are the links that point to your website. You have no control over all other websites in the world. You have control only over your own sites. So it means that physically you have no control over incoming backlinks from other sites and Google and other search engines seriously understand that. So there no question of penalty.
There are “high” and “low” quality inbound links. Links that are editorially controlled by the linking site is good or high quality. Links which are built automatically without editorial control is bad or low quality.
“Any link that intends to manipulate PageRank or a site’s ranking in Google search results may be considered as a part of a link scheme and a violation of Google’s Webmaster Guidelines. This includes any behaviour that manipulates links to your site.”
When someone makes attempt to lower your site’s ranking they can do it by creating links based negative SEO. Google works hard to ensure that a competitor cannot hurt your site by using bad inbound links pointing towards the site. If in any case, you get to a situation where inbound links are harming your site, you can report it in the webmaster forums and the search engines will look into the situation to see if they can improve their algorithms.
Search engines have inbuild algorithms to determine whether the inbound links are self-made or not.
Posted by SEO company Kerala