Income Tax Act, 1961
Section 274. PROCEDURE.
(1) No order imposing a penalty under this Chapter shall be made unless the assessee has been heard, or has been given a reasonable opportunity of being heard.
(2) No order imposing a penalty under this Chapter shall be made – (a) By the Income-tax officer, where the penalty exceeds ten thousand rupees;
(b) by the Assistant Commissioner or Deputy Commissioner where the penalty exceeds twenty thousand rupees, except with the prior approval of the Joint Commissioner.
(3) An income-tax authority on making an order under this Chapter imposing a penalty, unless he is himself the Assessing Officer, shall forthwith send a copy of such order to the Assessing Officer.
COMMISSIONER OF INCOME-TAX v. INDEN BISLERS.
COMMISSIONER OF INCOME-TAX v. D. RAMASAMY REDDIAR (DECD.) & ANR.