Section 520: cognizance of offences

Introduction

This provision concerns the court competent to conduct a trial for an offence under the Act. It does not itself define an offence or prescribe a punishment.

Key takeaways

What Section 520 says

"No court inferior to that of a Judicial Magistrate of the first class shall try any offence under this Act."

This means any prosecution for an offence under the Act must be tried by a Judicial Magistrate of the first class, or a court of higher rank - not by a lower court.

Scope and business relevance

Section 520 establishes a minimum judicial rank: a court inferior to a Judicial Magistrate of the first class cannot try an offence under the Act. It does not say that any court meeting that rank is automatically the correct forum for every prosecution.

Read it with Sections 495 and 496 for the Special Court framework. Section 495 provides for designation by notification; Section 496 addresses trial where a Special Court has been designated for the relevant area or cases.

Limits and related provisions

The court-rank rule does not define the alleged offence, determine guilt or prescribe punishment. Those questions depend on the charging provision and the evidence.

Section 496 also distinguishes pending proceedings: a competent court designated as a Special Court continues to try its cases, and a competent court not so designated may continue an offence already pending before it until disposal. Do not assume every existing prosecution must automatically move courts.

Step-by-step review

1. Identify the alleged offence and the court in which the trial is proceeding.

2. Confirm that the Section 520 minimum rank is satisfied.

3. Check any Special Court notification for the relevant area, case or class of cases under Sections 495 and 496.

4. For an existing proceeding, examine its pending-case position under Section 496(2) before drawing a conclusion about the trial forum.

Hypothetical practical example

Hypothetical illustration: a prosecution is pending before a court competent under Section 520 when Special Court arrangements are examined. The reviewer must check the notification and Section 496’s pending-case provisions. The fact that the court meets the minimum rank alone does not answer every allocation question, and a new designation does not by itself prove that this pending case must transfer.

Documents and record checklist

The complaint or charge identifying the alleged Act offence.

The trial court’s designation and the relevant Special Court notification, if any.

Case dates and orders needed to establish whether the pending-case provision applies.

Official Act source

• Income-tax Act, 2025 as amended by Finance Act, 2026: Section 520

Step-by-step flow for applying Section 520

1. 1

   Is the offence an offence under this Act?

   • No: Section 520 does not apply.
   • Yes: Go to the next step.
2. 2

   Which court is the case before?

   Identify the rank of the court where the complaint is filed or the case is listed.

3. 3

   Is the court inferior to that of a Judicial Magistrate of the first class?

   • Yes: That court cannot try the offence; the case must be before a Judicial Magistrate of the first class or a higher court.
   • No: Go to the next step.
4. 4

   Apply the other provisions for the trial

   Section 520 only sets the lowest court that can try the offence. It does not state the offence, the punishment or the procedure; those are in other provisions.

Practical checklist

Glossary

Judicial Magistrate of the first class

The minimum judicial rank referred to in the Section 520 restriction.

Special Court

A court designated under the Act’s Special Court framework for specified areas or cases.

Frequently asked questions