Procedure.
233. (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 (13) of section 230, if the penalty is imposable under the said section;
(b) the Assessing Officer, if the penalty is imposable under section 231; and
(c) the income-tax authority before whom the default has been committed, if the penalty is imposable under section 232.
(3) The notice referred to in sub-section (1) shall be issued—
(a) during the pendency of any proceedings under this Code for the relevant financial year, in respect of penalties referred to in section 230 or section 232;
(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 232.
(4) No order imposing a penalty under this Chapter shall be made unless the assessee has been given an opportunity of being heard.
(5) An order imposing a penalty under this Chapter shall be made with the approval of the Joint Commissioner, if—
(a) the penalty exceeds one lakh rupees and the income-tax authority levying the penalty is in the rank of Income-tax Officer; or
(b) the penalty exceeds five lakh rupees and the income-tax authority levying the penalty is in the rank of Assistant Commissioner or Deputy Commissioner.
(6) 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 162.
