Special Courts

495(1)

The Central Government, in consultation with the Chief Justice of the High Court, may, for trial of offences punishable under this Chapter, by notification, designate one or more courts of Judicial Magistrate of the first class as Special Court for such area or areas, or for such cases or class or group of cases, as specified in the notification.

495(2)

In this section, “High Court” means the High Court of the State in which a Judicial Magistrate of first class designated as Special Court was functioning immediately before such designation.

495(3)

While trying an offence under this Act, a Special Court shall also try an offence, other than an offence referred to in sub-section (1), with which the accused may, under the Bharatiya Nagarik Suraksha Sanhita, 2023, be charged at the same trial.

Explanation

Section Summary:

Section 495 of the new income tax law establishes the framework for the creation of Special Courts to handle offences under this chapter of the Act. The Central Government, in consultation with the Chief Justice of the High Court, can designate Judicial Magistrate of the first class courts as Special Courts for specific areas or cases. These courts are empowered to try not only tax-related offences but also other offences under the Bharatiya Nagarik Suraksha Sanhita, 2023, if they arise in the same trial.

Key Changes:

1. Introduction of Special Courts: This section introduces the concept of Special Courts specifically for trying offences under the income tax law, which was not explicitly outlined in the prior income tax act.
2. Jurisdiction Expansion: Special Courts can also try other offences under the Bharatiya Nagarik Suraksha Sanhita, 2023, if they are connected to the same case, streamlining the judicial process.

Practical Implications:

• For Taxpayers and Businesses: This provision aims to expedite the trial process for tax-related offences, reducing delays in the judicial system. It also ensures that related offences can be tried together, avoiding multiple trials.
• For the Judiciary: Special Courts will likely reduce the burden on regular courts by handling tax-related cases more efficiently.

Critical Concepts:

• Special Courts: These are courts designated specifically for trying offences under the income tax law. They are created by the Central Government in consultation with the Chief Justice of the High Court.
• Judicial Magistrate of the First Class: A judicial officer with the authority to handle certain types of cases, including those involving minor offences.
• Bharatiya Nagarik Suraksha Sanhita, 2023: A legal framework that governs certain criminal procedures and offences in India.

Compliance Steps:

1. Notification by Central Government: The Central Government must issue a notification designating specific courts as Special Courts.
2. Coordination with High Court: The designation process requires consultation with the Chief Justice of the High Court to ensure proper jurisdiction and functioning.

Examples:

• Scenario 1: A taxpayer is accused of tax evasion under the income tax law and is also charged with a related offence under the Bharatiya Nagarik Suraksha Sanhita, 2023. The Special Court can try both offences in the same trial, saving time and resources.
• Scenario 2: The Central Government designates a court in Mumbai as a Special Court for tax-related offences. This court will handle all such cases in the Mumbai area, ensuring faster resolution compared to regular courts.