Procedure
227. (1) The income-tax authority shall, for the purposes of imposing any penalty under this Chapter, issue a notice to any assessee requiring him to show cause why the penalty should not be imposed on him.
(2) The income-tax authority for the purposes of sub-section (1) shall be -
(a) the income-tax authority referred to in sub-section (12) of section 224, if the penalty is imposable under the said section;
(b) the Assessing Officer, if the penalty is imposable under section 225;and
(c) the income-tax authority before whom the default has been committed, if the penalty is imposable under section 226.
(3) The notice referred to in sub-section (1) shall be issued only during the pendency of any proceedings under this Code for the relevant financial year.
(4) An order imposing a penalty under this Chapter shall be made with the approval of the Joint Commissioner, if -
(a) the penalty exceeds one hundred thousand rupees and the income-tax authority levying the penalty is in the rank of Income-tax Officer;or
(b) the penalty exceeds five hundred thousand rupees and the income-tax authority levying the penalty is in the rank of Assistant Commissioner or Deputy Commissioner.
(5) The proceedings under this Code shall be deemed to be pending for the relevant financial year, if-
(a) a notice of demand has been issued under section 168 in consequence of any order made or intimation issued under this Code for the relevant financial year and the sum or part thereof, specified therein, remains unpaid;
(b) an appeal has been filed against any order made or intimation issued under this Code for the relevant financial year.
(6) Every order or penalty issued under this Chapter shall be accompanied by a notice of demand in respect of the amount of penalty imposed and the notice of demand shall be deemed to be a notice under section 168.
