Central Bureau of Investigation (CBI)  arrested five accused  including  a Commissioner of Income Tax (Exemption), Hyderabad and four others for demanding and accepting a bribe of Rs. 70 lakh meant for said Commissioner to decide an appeal in favour of private party.

A case was registered by CBI on 09.05.2025 against Commissioner of Income Tax and 14 other persons/entities on allegations that  accused  Commissioner of Income Tax (Exemptions), Hyderabad, who is also holding the Additional Charge of Commissioner of Income Tax (Appeals Unit-8) & (Appeals Unit-7), Office of the Principal Chief Commissioner of Income Tax, Hyderabad in connivance with middlemen was indulging in corrupt and illegal activities of obtaining undue gratification for extending illegal favours in deciding appeals in favour of the private parties whose appeals were pending with him for decision.

CBI laid a trap and caught an accused middleman while accepting a bribe of Rs. 70 lakh from a private party, at Mumbai on behalf of accused Commissioner of Income Tax. Consequently, accused Commissioner of Income Tax and his associates were also arrested from Hyderabad.

Searches are being conducted by CBI at 18 locations in Mumbai, Hyderabad, Khammam, Vishakhapatnam and New Delhi which has led to recovery of various incriminating documents/articles including cash of Rs. 69 lakh (approx) besides the bribe amount of Rs. 70 lakh. The searches are still underway.

The accused  arrested at Mumbai are being produced before the Court of Ld. Special Judge, CBI Cases, Mumbai while the accused arrested at Andhra Pradesh/Telangana are being produced before the competent Court at Andhra Pradesh/Telangana.

Investigation is continuing.

Bribery in tax administration leads to arrests after sting operation and recovery of illicit assets. A federal investigation alleges a senior tax official and intermediaries engaged in soliciting and receiving a bribe through middlemen to influence appeal decisions; a sting operation intercepted a middleman accepting illicit payment, leading to arrests of the official and associates. Coordinated searches at multiple locations recovered incriminating documents and cash connected to the bribery allegation, and detained persons are being produced before competent courts while investigation continues.