Offences triable by Special Court

Section 496 — OFFENCES TRIABLE BY SPECIAL COURT

Section 496 of the Income-tax Act, 2025 corresponds to s. 280B of the Income-tax Act, 1961.

STATUTORY ARCHITECTURE

Section 496 channels the trial of offences punishable under its Chapter to Special Courts. It operates irrespective of anything contained in the Bharatiya Nagarik Suraksha Sanhita, 2023. Where a Special Court has been designated for an area, or for cases or a class or group of cases, the offences are triable only by that court, and it may take cognizance on a complaint made by an authority authorised under the Act. Sub-section (2) provides for the transition of cases in courts competent to try offences under s. 520.

KEY ELEMENTS

• Exclusive jurisdiction, s. 496(1)(a): offences punishable under this Chapter are triable only by the Special Court, if so designated, for the area or areas, or for cases or class or group of cases, in which the offence has been committed.
• Cognizance, s. 496(1)(b): a Special Court may, on a complaint made by an authority authorised in this behalf under the Act, take cognizance of the offence for which the accused is committed for trial.
• Court designated as Special Court, s. 496(2)(a): a court competent to try offences under s. 520 that has been designated as a Special Court continues to try the offences before it, or offences arising under the Act after the designation.
• Court not designated, s. 496(2)(b): a court competent to try offences under s. 520 that has not been designated may continue to try an offence pending before it till its disposal.

CHANGES FROM THE 1961 ACT

The section corresponds to s. 280B of the 1961 Act and is substantively the same. The visible changes are: the override now refers to the Bharatiya Nagarik Suraksha Sanhita, 2023 in place of the Code of Criminal Procedure, 1973 (the 1961 text carries a note that the Code is now read as Act No. 46 of 2023); "Irrespective of" replaces "Notwithstanding"; the proviso to clause (a) of s. 280B becomes sub-section (2); and the reference to a court competent to try offences under s. 292 of the 1961 Act becomes a court competent to try offences under s. 520.

PRACTITIONER NOTES

• Exclusivity depends on designation: the words "if so designated" tie the exclusive jurisdiction in clause (1)(a) to a Special Court having been designated for the area or class of cases concerned.
• Cognizance under clause (1)(b) is on a complaint made by an authority authorised in this behalf under the Act, so the authorisation of the complainant is a threshold matter.
• For a prosecution already pending in a court that has not been designated, sub-section (2)(b) allows that court to continue till disposal.
• A court that has been designated continues with the matters before it and also takes offences arising under the Act after the designation.

CROSS-REFERENCES

• s. 520 — provides that no court inferior to a Judicial Magistrate of the first class shall try an offence under the Act; sub-section (2) refers to the court competent to try offences under s. 520.
• Bharatiya Nagarik Suraksha Sanhita, 2023 (46 of 2023) — overridden by sub-section (1).
• s. 280B of the 1961 Act — the corresponding provision.