Procedural Reform in Tax Offence Trials : Clause 497 of the Income Tax Bill, 2025 Vs. Section 280C of the Income-tax Act, 1961
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....these provisions is to mandate that such offences be tried as 'summons cases' by a Special Court, and to clarify the overriding effect of these provisions over general criminal procedure statutes. While Section 280C refers to the Code of Criminal Procedure, 1973 (CrPC), Clause 497 refers to the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS), which is proposed to replace the CrPC. The transition from the CrPC to the BNSS is part of a broader legislative reform aimed at modernizing India's criminal procedure laws. This commentary undertakes a detailed analysis of Clause 497, explores its legislative intent, practical implications, and compares it with the existing Section 280C, highlighting similarities, differences, and the bro....
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....all try an offence under this Chapter punishable with imprisonment not exceeding two years or with fine, or with both, as a summons case, and the provisions of the Bharatiya Nagarik Suraksha Sanhita, 2023 as applicable in the case of trial of summons case, shall apply accordingly." The provision can be broken down into the following key elements: * Overriding Effect: The clause begins with a non-obstante phrase ("irrespective of anything contained"), making it clear that it overrides any contrary provisions in the BNSS. * Jurisdiction of Special Court: The trial of relevant offences is to be conducted by the Special Court, a designated court for speedy trial of tax offences. * Scope of Offences: The provision applies to offences und....
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....stantive change from Section 280C is the reference to the BNSS instead of the CrPC, reflecting the legislative intent to harmonize the new Income Tax Bill with the new criminal procedure code. Comparative Analysis with Section 280C of the Income-tax Act, 1961 Section 280C: Text and Context Section 280C, inserted by the Finance Act, 2012, reads: "Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), the Special Court, shall try, an offence under this Chapter punishable with imprisonment not exceeding two years or with fine or with both, as a summons case, and the provisions of the Code of Criminal Procedure, 1973 as applicable in the case of trial of summons case, shall apply accordingly." The structu....
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....d the interpretation of procedural rights. Comparative Table Feature Section 280C of the Income-tax Act, 1961 Clause 497 of the Income Tax Bill, 2025 Reference Law Code of Criminal Procedure, 1973 (CrPC) Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS) Applicability Offences punishable with imprisonment not exceeding two years, or with fine, or both Same Type of Case Summons case Summons case Special Court Yes Yes Non-obstante Clause Yes (overrides CrPC) Yes (overrides BNSS) Procedural Law Applied CrPC provisions for summons cases BNSS provisions for summons cases Contextual and Policy Considerations * Harmonization with Criminal Law Reform: The replacement of the CrPC with the BNSS is a maj....
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....greater emphasis on summary disposal. Accused persons are less likely to be subjected to prolonged detention or rigorous procedural hurdles, and the risk of miscarriage of justice due to procedural technicalities is reduced. For Prosecution and Tax Authorities For the prosecution, the provision ensures that minor tax offences are disposed of expeditiously, reducing the backlog of cases and allowing prosecutorial resources to be focused on more serious violations. The streamlined procedure also minimizes the opportunity for accused persons to delay proceedings through procedural tactics. For the Judiciary Special Courts are empowered to handle such cases efficiently, reducing the burden on regular criminal courts. This specialization pro....