Procedure for Assessment of Penalties [Section 274] :

Section 274 provides that no order imposing a penalty exceeding Rs 10,000 shall be made by an Assessing Officer. Where the penalty exceeds ` 25,000, the Deputy Commissioner (Appeals) has to get the prior approval of the Joint Commissioner.

In all cases before a penalty is imposed, the assessee should be given a reasonable opportunity of being heard.

Further, where the authority imposing penalty is not the Assessing Officer, a copy of the penalty order should be sent to the Assessing Officer.