Designation of Courts in Madhya Pradesh for the purposes of sub section (1) of section 280A of the Income tax Act, 1961 and section 84 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015,

## Report on Notification Designating Special Courts under Income Tax Act and Black Money Act **1. Executive Summary:** This report analyzes a notification (S.O. 1915(E)) issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes (CBDT), designating specific courts in Madhya Pradesh as Special Courts for cases arising under the Income-tax Act, 1961 and the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. The notification aims to streamline the judicial process for handling cases related to income tax and black money by assigning specific jurisdictions to designated courts. The key finding is the establishment of a network of Special Courts across Madhya Pradesh, each with a defined geographical jurisdiction, to expedite the resolution of cases under these Acts. **2. Introduction:** This report provides an informative analysis of Notification No. 44/2022, issued on April 22, 2022, by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes. The purpose of this report is to provide stakeholders with a clear understanding of the notification's provisions, which designate Special Courts in the State of Madhya Pradesh for handling cases related to the Income-tax Act, 1961, and the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, based solely on the provided policy text. **3. Policy Overview:** This is a new policy establishing Special Courts. * **Core Objective(s):** The primary objective, as inferred from the text, is to expedite and specialize the handling of cases arising under the Income-tax Act, 1961, and the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, within the State of Madhya Pradesh. This is achieved by designating specific courts for these purposes and defining their jurisdictional areas. **4. Background and Rationale:** As a new policy, the notification likely addresses a need for more efficient and specialized handling of cases related to income tax evasion and black money. The designation of Special Courts suggests that the existing judicial infrastructure may have been insufficient to handle the volume or complexity of such cases, leading to delays and potential inefficiencies. The policy addresses the problem of slow processing of financial crime cases. **5. Key Provisions / Changes:** This is a new policy establishing Special Courts for offenses under the Incometax Act, 1961 43 of 1961 and section 84 of the Black Money Undisclosed Foreign Income and Assets and Imposition of Tax Act, 2015 22 of 2015. The main provisions of the notification are: * **Designation of Special Courts:** The notification designates specific courts in Madhya Pradesh as Special Courts for handling cases under the Income-tax Act, 1961, and the Black Money Act, 2015. * **Geographical Jurisdiction:** The notification specifies the geographical area of jurisdiction for each designated Special Court. This is detailed in the table, assigning specific districts to each court. * **Legal Basis:** The designation is made under the authority granted by subsection 1 of section 280A of the Income-tax Act, 1961, and section 84 of the Black Money Act, 2015. * The designated special courts are : Judicial Magistrate First Class, Indore; Chief Judicial Magistrate, Khandwa; Chief Judicial Magistrate, Ujjain; Chief Judicial Magistrate, Ratlam; Judicial Magistrate First Class, Bhopal; Chief Judicial Magistrate, Chhindwara; Judicial Magistrate First Class, Jabalpur; Judicial Magistrate First Class, Gwalior. **6. Target Audience and Stakeholders:** The target audience and stakeholders directly affected by this policy include: * **Individuals and entities** facing legal proceedings under the Income-tax Act, 1961, and the Black Money Act, 2015, within the State of Madhya Pradesh. * **The designated courts and their personnel** who will be responsible for handling these cases. * **The Income Tax Department** and other law enforcement agencies involved in investigating and prosecuting cases under these Acts. * **Legal professionals** practicing in the designated jurisdictions. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The Central Board of Direct Taxes (CBDT), under the Ministry of Finance, is the responsible agency for issuing the notification. The Chief Justice of the High Court of Madhya Pradesh was consulted in the process. * **Timelines/Procedures:** The notification came into effect on the date of its publication, April 22, 2022. No specific procedures are detailed in the text beyond the designation of the courts and their jurisdictions. It can be inferred that existing legal procedures under the Income-tax Act and Black Money Act will be followed within these Special Courts. **8. Expected Outcomes / Impact of Changes:** The likely intended outcomes of designating these Special Courts are: * **Faster Resolution of Cases:** The specialization and focused jurisdiction should lead to a more efficient handling of cases, reducing delays in the judicial process. * **Increased Expertise:** The designated courts and their personnel may develop specialized expertise in handling cases related to income tax evasion and black money. * **Improved Enforcement:** The streamlined judicial process could lead to improved enforcement of the Income-tax Act and the Black Money Act. **9. Conclusion:** The notification designating Special Courts in Madhya Pradesh for cases under the Income-tax Act, 1961, and the Black Money Act, 2015, represents a significant step towards streamlining the judicial process for handling financial crime cases. By assigning specific jurisdictions to designated courts, the policy aims to expedite the resolution of cases, enhance expertise, and improve enforcement of these important laws. This notification is a key component in the government's efforts to combat tax evasion and black money, and its effective implementation will be crucial for achieving its intended outcomes.

Key Entities Referenced