According to the provisions of section 274, if any penalty of the aforesaid nature is to be imposed, the assessee must be provided with a reasonable opportunity of being heard. If no such opportunity is provided to• the assessee, the penalty order will be invalid.
No order imposing a penalty, can be made without prior approval of Joint commissioner
(a) where penalty exceeds Rs. 10,000 levied by I.T.O.
(b) where penalty exceeds Rs. 20,000 levied by Assistant Commissioner or Deputy Commissioner. [Section 274 (2)].
An Income-tax authority on making an order imposing a penalty, unless he himself is an Assessing Officer, shall forthwith send a copy of such order to the Assessing Officer. [Section 274(3)].