(1) The tax authority shall, for the purposes of imposing any penalty under this Chapter, issue a notice to an assessee requiring him to show cause why the penalty should not be imposed on him.
     (2) The notice referred to in sub-section (1) shall be issued—
         (a) during the pendency of any proceedings under this Act for the relevant previous year, in respect of penalty referred to in section 41;
         (b) within a period of three years from the end of the financial year in which the default is committed, in respect of penalties referred to in section 45.
     (3) No order imposing a penalty under this Chapter shall be made unless the assessee has been given an opportunity of being heard.
     (4) An order imposing a penalty under this Chapter shall be made with the approval of the Joint Commissioner, ¹ [or the Joint Director] if—
     (a) the penalty exceeds one lakh rupees and the tax authority levying the penalty is in the rank of Income-tax Officer; or
     (b) the penalty exceeds five lakh rupees and the tax authority levying the penalty is in the rank of Assistant Commissioner or Deputy Commissioner ¹ [or Assistant Director or Deputy Director].
     (5) Every order of penalty issued under this Chapter shall be accompanied by a notice of demand in respect of the amount of penalty imposed and such notice of demand shall be deemed to be a notice under section 13.