46. Procedure
The tax authority shall, for the purposes of imposing any penalty under this Chapter, issue a notice to an assessee requiring him to show cause why the penalty should not be imposed on him.
The notice referred to in sub-section (1) shall be issued—
during the pendency of any proceedings under this Act for the relevant previous year, in respect of penalty referred to in section 41;
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 45.
No order imposing a penalty under this Chapter shall be made unless the assessee has been given an opportunity of being heard.
An order imposing a penalty under this Chapter shall be made with the approval of the Joint Commissioner, [or the Joint Director] if—
the penalty exceeds one lakh rupees and the tax authority levying the penalty is in the rank of Income-tax Officer; or
the penalty exceeds five lakh rupees and the tax authority levying the penalty is in the rank of Assistant Commissioner or Deputy Commissioner [or Assistant Director or Deputy Director].
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 13.
Amendment notes (1)
- Ins w.e.f. 1-4-2018 . Ins. by Act 13 of 2018, s. 219 (w.e.f. 1-4-2018).