Section 274 in The Income Tax Act, 1961

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] [ Substituted by Act 21 of 1998, Section 3, for " Assistant Commissioner" (w.e.f. 1.10.1998).][, where the penalty exceeds twenty thousand rupees, except with the prior approval of the ] [Inserted by Act 4 of 1988, Section 115 (w.e.f. 1.4.1989).][Joint Commissioner] [ Substituted by Act 21 of 1998, Section 3, for " Deputy Commissioner" (w.e.f. 1.10.1998).].

(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.] [ Substituted by Act 4 of 1988, Section 115, for sub-Section (3) (w.e.f. 1.4.1989).]