(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, where the penalty exceeds twenty thousand rupees, 

except with the prior approval of the Joint Commissioner. 

(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.