CBI has made first arrests today including of an IRS officer of the rank of Dy. Commissioner of Income Tax and a private person in connection with their involvement in an ongoing investigation of a case related to sabotaging of the Faceless Scheme of Income Tax Assessment.

Investigation conducted so far revealed that the arrested private person and the Dy. Commissioner of Income Tax in conspiracy with others have been contacting various assesses of pending high value IT assessment cases, promising favourable orders in their income tax cases under scrutiny in lieu of pecuniary benefits.

It may be recalled that Government of India has introduced the Faceless Scheme of Income Tax Assessment as a futurist reform in Tax Administration with an aim to increase the transparency, reduce human interface and thereby prevent corruption. This scheme is called ‘Faceless’ simply because the Assesse will not see the face of his or her Assessing Officer and will also not be able to know as to who will be conducting the assessments. This will reduce the interface, discretion and corruption. However, these accused persons have been clandestinely collecting and disseminating the confidential insider information pertaining to this scheme like the name of the assessment officer, the issues under scrutiny etc., pertaining to pending big ticket assessment/appeal cases, to the Assesses and thereafter collecting bribe amounts. The arrested accused are being produced before the Jurisdictional Court.

CBI has earlier conducted searches on 06.02.2025 at 18 places at Delhi, Mumbai, Thane, West Champaran (Bihar), Bengaluru, Kottayam (Kerala), etc. Various incriminating documents, evidences of payment of undue gratification and some digital electronic evidences were recovered during searches.

Initially a complaint was received from the Income Tax Department in this regard and an enquiry was initiated by CBI. On finding prima facie material, this case was registered by CBI against one Deputy Commissioner (IRS)(IT) & two Inspectors of Income Tax Department, five Chartered Accountants and one private person and unknown others on the allegations of attempts by these accused to defy and sabotage the purpose of the ‘Faceless Scheme of Assessment’ introduced by Government of India.

Investigation is continuing.

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Faceless Scheme integrity breached: alleged insider disclosure and bribery scheme promising favourable tax assessment outcomes. Allegations assert that a Deputy Commissioner-level income tax officer and a private intermediary conspired to obtain and disclose confidential assessment information under the Faceless Scheme, promise favourable orders to taxpayers in pending high-value assessments in exchange for pecuniary benefits, and collect undue gratification. Searches at multiple locations yielded incriminating documents, payment evidence, and digital material. A complaint from the Income Tax Department led to registration of a criminal investigation naming departmental officers, chartered accountants, and private persons; arrests have been made and investigation continues.