Case Laws & Commentary — Income-tax Act, 1961 (as amended by the Finance Act, 2026) — bharattax.co Treatise
Status: Live. Designation of Special Courts for trial of Chapter XXII offences (inserted by the Finance Act, 2012, w.e.f. 1 July 2012).
Finance Act, 2026: Not amended by the Finance Act, 2026.
Mechanism: The Central Government, in consultation with the Chief Justice of the High Court, may designate Magistrate (first class) courts as Special Courts to try offences under the Chapter; such a court may also try connected offences.
Litigation profile: Sparse — administrative/procedural; operationalised by CBDT notifications.
A. COMMENTARY
A dedicated trial forum
Section 280A, inserted by the Finance Act, 2012 with effect from 1 July 2012, empowers the Central Government, in consultation with the Chief Justice of the High Court, to designate by notification one or more courts of Magistrate of the first class as 'Special Courts' for the trial of offences punishable under Chapter XXII, for specified areas or cases. The object is speed and specialisation in the disposal of economic offences. The Explanation clarifies which High Court's Chief Justice is to be consulted. Sub-section (2) allows a Special Court trying an offence under the Act to also try, at the same trial, any other offence with which the accused may be charged under the Code of Criminal Procedure.
Operationalisation
The designation is effected administratively. The CBDT and the Central Government have, through successive notifications (and in consultation with the High Courts), designated Special Courts across States. The provision is procedural; the substantive offences and defences are unaffected by which court tries them.
B. STATUTORY TEXT (verbatim — pre-Finance Act, 2026 text)
Text reproduced verbatim from the bare Act; section 280A is not amended by the Finance Act, 2026.
Special Courts.
280A. (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 Magistrate of the first class as Special Court for such area or areas or for such cases or class or group of cases as may be specified in the notification.
Explanation.— In this sub-section, "High Court" means the High Court of the State in which a Magistrate of first class designated as Special Court was functioning immediately before such designation.
(2) 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 Code of Criminal Procedure, 1973 (2 of 1974), be charged at the same trial.
C. AUTHORITIES
There is no reported merits decision construing section 280A (candour rule). It is an administrative/procedural provision operationalised through Central Government/CBDT designation notifications in consultation with the High Courts.
Cognate context — designation and economic-offence trial
Designation notifications (CBDT / Central Government)
Court/Year Administrative.
Holding Special Courts have been designated by notification in consultation with the High Courts (e.g. CBDT Notification No. 87/2019 and subsequent State-specific notifications); no interpretive judgment on section 280A has been reported. Candour rule applies.
CHAPTER XXII — OFFENCES AND PROSECUTIONS
Section 280A — Special Courts
Case Laws & Commentary — Income-tax Act, 1961 (as amended by the Finance Act, 2026) — bharattax.co Treatise
Status: Live. Designation of Special Courts for trial of Chapter XXII offences (inserted by the Finance Act, 2012, w.e.f. 1 July 2012).
Finance Act, 2026: Not amended by the Finance Act, 2026.
Mechanism: The Central Government, in consultation with the Chief Justice of the High Court, may designate Magistrate (first class) courts as Special Courts to try offences under the Chapter; such a court may also try connected offences.
Litigation profile: Sparse — administrative/procedural; operationalised by CBDT notifications.
A. COMMENTARY
A dedicated trial forum
Section 280A, inserted by the Finance Act, 2012 with effect from 1 July 2012, empowers the Central Government, in consultation with the Chief Justice of the High Court, to designate by notification one or more courts of Magistrate of the first class as 'Special Courts' for the trial of offences punishable under Chapter XXII, for specified areas or cases. The object is speed and specialisation in the disposal of economic offences. The Explanation clarifies which High Court's Chief Justice is to be consulted. Sub-section (2) allows a Special Court trying an offence under the Act to also try, at the same trial, any other offence with which the accused may be charged under the Code of Criminal Procedure.
Operationalisation
The designation is effected administratively. The CBDT and the Central Government have, through successive notifications (and in consultation with the High Courts), designated Special Courts across States. The provision is procedural; the substantive offences and defences are unaffected by which court tries them.
B. STATUTORY TEXT (verbatim — pre-Finance Act, 2026 text)
Text reproduced verbatim from the bare Act; section 280A is not amended by the Finance Act, 2026.
Special Courts.
280A. (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 Magistrate of the first class as Special Court for such area or areas or for such cases or class or group of cases as may be specified in the notification.
Explanation.— In this sub-section, "High Court" means the High Court of the State in which a Magistrate of first class designated as Special Court was functioning immediately before such designation.
(2) 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 Code of Criminal Procedure, 1973 (2 of 1974), be charged at the same trial.
C. AUTHORITIES
There is no reported merits decision construing section 280A (candour rule). It is an administrative/procedural provision operationalised through Central Government/CBDT designation notifications in consultation with the High Courts.
Cognate context — designation and economic-offence trial
Designation notifications (CBDT / Central Government)
Court/Year Administrative.
Holding Special Courts have been designated by notification in consultation with the High Courts (e.g. CBDT Notification No. 87/2019 and subsequent State-specific notifications); no interpretive judgment on section 280A has been reported. Candour rule applies.