Offences triable by Special Court.

496(1)

Irrespective of anything contained in the Bharatiya Nagarik Suraksha Sanhita, 2023,—

• (a) the offences punishable under this Chapter shall be triable only by the Special Court, if so designated, for the area or areas or for cases or class or group of cases, as the case may be, in which the offence has been committed;
• (b) a Special Court may, upon a complaint made by an authority authorised in this behalf under this Act, take cognizance of the offence for which the accused is committed for trial.

496(2)

For the purposes of sub-section (1)(a), the court competent to try offences under section 520,—

• (a) which has been designated as a Special Court under this section, shall continue to try the offences before it or offences arising under this Act after such designation;
• (b) which has not been designated as a Special Court, shall continue to try such offence pending before it till its disposal.

Explanation

Section Summary:

Section 496 of the new income tax law specifies that certain tax-related offences must be tried exclusively by a Special Court, if such a court has been designated for the relevant area or type of case. This section overrides any conflicting provisions in the Bharatiya Nagarik Suraksha Sanhita, 2023, ensuring that tax offences are handled by courts with specialized jurisdiction.

Key Changes:

1. Exclusive Jurisdiction of Special Courts: Unlike previous laws, this section mandates that tax offences under this chapter can only be tried by a Special Court, if one has been designated for the specific area or type of case.
2. Continuity of Cases: If a court was already handling a case under Section 520 before being designated as a Special Court, it will continue to handle that case. Similarly, if a court is not designated as a Special Court, it will still complete the trial of any pending cases.

Practical Implications:

• Taxpayers and Businesses: Taxpayers accused of offences under this chapter will have their cases heard by a Special Court, which may lead to more specialized and efficient handling of tax-related legal matters.
• Judicial Process: Courts already handling cases under Section 520 will not be disrupted, ensuring continuity in the judicial process. However, new cases will be directed to Special Courts, if designated.

Critical Concepts:

• Special Court: A court designated specifically to handle tax-related offences under this chapter. It has exclusive jurisdiction over such cases.
• Section 520: Refers to the specific provision under which certain tax offences are defined. Cases under this section are subject to the jurisdiction of Special Courts.
• Bharatiya Nagarik Suraksha Sanhita, 2023: A broader legal framework that governs criminal procedures in India. Section 496 overrides any conflicting provisions in this framework regarding the trial of tax offences.

Compliance Steps:

1. For Authorities: Ensure that complaints related to tax offences are filed with the appropriate Special Court, if one has been designated.
2. For Courts: Continue handling pending cases under Section 520, even if not designated as a Special Court. New cases must be directed to Special Courts, if applicable.

Examples:

• Scenario 1: A taxpayer is accused of tax evasion under this chapter. If a Special Court has been designated for the area, the case will be tried exclusively by that court.
• Scenario 2: A court is already handling a tax offence case under Section 520. If the court is later designated as a Special Court, it will continue to handle the case. If not designated, it will still complete the trial.