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.
1(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 2Assistant Commissioner or Deputy Commissioner, where the penalty exceeds
twenty thousand rupees,
except with the prior approval of the3Joint Commissioner.
4(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.
Notes:
1. Ins. by Act 4 of 1988, s. 115 (w.e.f. 1-4-1989). Earlier it was amended by Act of 42 of 1970, s. 49 (w.e.f. 1-4-1971) and
later omitted by act 41 of 1975, s. 65 (w.e.f. 1-4-1975).
2. Subs. by Act 21 of 1998, s. 3, for “Assistant Commissioner” (w.e.f. 1-10-1998).
3. Subs by s. 3, ibid, for “Deputy Commissioner” (w.e.f. 1-10-1998).
4. Subs. by Act 4 of 1988, s. 115, for sub-section (3) (w.e.f. 1-4-1987). Earlier it was amended by Act 29 of 1977, s. 19
(w.e.f. 10-7-1978).