Chapter XXII - Offences and Prosecution
Section 495
Section 495: designation of Special Courts
Section 495 allows the Central Government to set up dedicated Special Courts to try offences under Chapter XXII of the Act, in consultation with the concerned High Court.
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This article is for general information. Refer to the Income-tax Act, 2025 as amended by the Finance Act, 2026 and the Taxation and Other Laws (Amendment) Act, 2026 for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
(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.
(2) For the purposes of this section, the expression “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.
(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 (46 of 2023), be charged at the same trial.
Introduction
The Central Government may designate a Judicial Magistrate of the first class court as a Special Court for tax offences in the specified area or class of cases, after consulting the Chief Justice of the High Court.
While trying an offence under the Act, the Special Court must also try another offence with which the accused may be charged at the same trial under the Bharatiya Nagarik Suraksha Sanhita, 2023.
Key takeaways
Designation by notification
The Central Government acts by notification after the required consultation.
Scope can vary
A designation may cover named areas, cases or classes or groups of cases.
Connected offences
While trying an offence under the Act, the Special Court must also try another offence with which the accused may be charged at the same trial under the Bharatiya Nagarik Suraksha Sanhita, 2023.
Designating a Special Court
"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."
Meaning of "High Court"
For this section, "High Court" means the High Court of the State in which a Judicial Magistrate of the first class designated as Special Court was functioning immediately before that designation.
Trying other offences alongside a tax offence
While trying an offence under the Act, the Special Court must also try another offence with which the accused may be charged at the same trial under the Bharatiya Nagarik Suraksha Sanhita, 2023.
Step-by-step flow for applying Section 495
- 1
Who can designate a Special Court?
The Central Government, in consultation with the Chief Justice of the High Court, by notification (Section 495(1)).
- 2
Which court can be designated?
Only a court of Judicial Magistrate of the first class. One or more such courts may be designated for trial of offences punishable under this Chapter.
- 3
Which High Court's Chief Justice is consulted?
Under Section 495(2), the High Court of the State in which the Judicial Magistrate of the first class was functioning immediately before the designation.
- 4
What is the scope of the designation?
The notification specifies the area or areas, or the cases or class or group of cases, for which the court is a Special Court. Read the notification to see whether a particular case falls within it.
- 5
Is the accused also charged with a non-tax offence?
- Yes, and the BNSS allows it to be charged at the same trial: Under Section 495(3), the Special Court also tries that other offence.
- No: The Special Court tries the offence under this Act.
Practical checklist
Do
- Read the designation notification to check the court, area and case or class of cases covered.
- For another offence in the same proceeding, check whether it may be charged at the same trial under the Bharatiya Nagarik Suraksha Sanhita, 2023; the statutory same-trial condition matters.
Avoid
- Do not assume every tax case falls within every designated Special Court’s notification.
Illustrative example
Worked example: a joint trial in a designated court
Hypothetical facts (illustration only, not a real taxpayer): Assume the Central Government, after consulting the Chief Justice of the relevant High Court, has notified a Judicial Magistrate of the first class court in City A as a Special Court for offences under this Chapter committed in City A. A person in City A is accused of an offence under this Chapter and of another offence with which, under the Bharatiya Nagarik Suraksha Sanhita, 2023, he may be charged at the same trial.
Designation
The court is a Judicial Magistrate of the first class court designated by notification, as Section 495(1) requires.
Scope
The offence was committed in City A, the area named in the assumed notification.
Other offence
Section 495(3) requires the Special Court, while trying the tax offence, to also try the other offence that may be charged at the same trial under the Sanhita.
Limit
Section 495 does not itself say which non-tax offences may be joined; that depends on the Sanhita.
Outcome
- Both offences are tried together by the Special Court in City A.
- City A and the notification terms are assumed for illustration.
Glossary
- Special Court
- A court of Judicial Magistrate of the first class designated by the Central Government by notification under Section 495(1) for trial of offences under this Chapter.
- High Court (Section 495)
- The High Court of the State in which the designated Judicial Magistrate of the first class was functioning immediately before the designation (Section 495(2)).
Frequently asked questions
Who designates a Special Court under the Income-tax Act, 2025?
The Central Government, acting in consultation with the Chief Justice of the concerned High Court, designates one or more Judicial Magistrate first class courts as Special Courts by notification.
Can a Special Court try other offences besides the tax offence?
While trying an offence under the Act, the Special Court must also try another offence with which the accused may be charged at the same trial under the Bharatiya Nagarik Suraksha Sanhita, 2023.
Need help applying this provision to your situation?
Talk to our tax team about this sectionLast updated 10 October 2026