(1) Where the amount of any penalty imposed under this section is directly related to the amount of income determined under the provisions of this Act. and the amount of such income is subsequently revised by an order made under this Act, the Deputy Commissioner of Taxes shall pass an order revising the order of penalty determine the amount of income revising the penalty at the time of revising the income.

(2) A reasonable opportunity of being heard shall be given to the person on whom the penalty applies before passing any order regarding the enhancement of the amount of penalty.

(3) In cases where the revised order of penalty referred to in subsection (1) is not issued after the issuance of the relevant revised tax assessment order, the person to whom the penalty order applies may apply to the Deputy Commissioner of Taxes requesting revision of the amount of the said penalty, and if no order is passed within 180 (one hundred and eighty) days of the receipt of the application, the order of penalty shall be deemed to have been amended in accordance with the revised tax assessment and all the provisions of this Act shall come into force accordingly.