CBI arrests an Additional Commissioner of Income Tax and two others in a bribery

[SINGHAM]

The Central Bureau of Investigation has arrested an Additional Commissioner of Income Tax (IRS 1991 Batch), Chennai; Managing Director of Chennai-based private educational firm and a private person in a bribery case of Rs.50 lakh. The accused public servant was posted in Company Range-I, Chennai and was also holding additional charge of Company Range-III since.2010.

It was alleged that on 04.08.2011, the Additional Commissioner organized search and survey proceedings under Income Tax Act in the premises of Chennai-based private educational firm. The educational firm provides in-school education through internet and V-SAT. While conducting the search and survey proceedings, he also visited the premises of firm. The search and survey proceedings revealed that the Managing Director of the firm had concealed taxable income to the tune of Rs.116 crores. After the detection of huge taxable income, the Managing Director of firm contacted the Additional Commissioner through a Chartered Accountant to reduce the income tax liability. After holding negotiations, he requested the Additional Commissioner to suppress Rs.60 crores of taxable income out of Rs.116 crores detected by the search and survey.

The negotiations reached a final settlement that the Managing Director of firm should give Rs.50 lakh as bribe to Additional Commissioner of Income Tax for concealing the taxable income and reducing his tax liability. The Additional Commissioner reportedly told the Managing Director of firm to handover bribe money at his house. Accordingly, the Managing Director of firm brought the bribe amount of Rs.50 lakh in a card board box used for packing fans and handed it over at the house of Additional Commissioner. The Additional Commissioner wanted to transport the bribe amount from his residence to some unknown place through a private person. At this point of time, on a tip off, CBI apprehended the Additional Commissioner and the private person when they were trying to remove Rs.50 lakh from his house to some unknown place. The bribe money was seized. The Managing Director of private educational firm was also arrested.

Searches are being conducted at Mumbai; Hyderabad; Vizag; Bangalore and Chennai. Searches have resulted in seizure of Rs.48 lakh from the residence of private person and Rs.10 lakh from other places. The bribe amount of Rs.50 lakh and the gold jewellery weighing 1.8 kgs were seized from the residence of Additional Commissioner.

The CBI registered a case U/s 120-B IPC r/w Sec.7 of PC Act and Sec.13(2) r/w 13(1)(d) of PC Act, 1988 and Sec.12 of PC Act. Further investigation is continuing.