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The CBI today arrested Income Tax Commissioner Daya Shankar in Mumbai for allegedly accepting a bribe of Rs2 lakh from a private company for passing a favourable order in an appeal matter.

“Daya Shankar, Commissioner IT (Appeals), was arrested this morning from his office in Bandra for demanding and accepting bribe for settling and issuing a favourable order in an appeal matter pending before him,” CBI Joint Director (Western Region) Rishiraj Singh told reporters.

A firm engaged in copper wire manufacture had filed its return for assessment year 2008-09 which was taken up for scrutiny by the jurisdictional IT officer. After scrutiny, the IT officer had passed an order for additional tax liabilities. Aggrieved by this, the company approached Shankar with an appeal challenging the order.

“Shankar demanded bribe from the company for issuing a favourable assessment order. He also told them that if they do no pay the money then he would confirm the order passed earlier,” Singh said.

CBI’s Anti-Corruption Wing laid a trap after the company lodged a complaint following which Shankar was caught while accepting the bribe.

“Searches are being conducted at the officer’s residences in Delhi, Ghaziabad, Lucknow and Mumbai. So far we have recovered Rs8 lakh in cash from his residence here. We are investigating if the accused had taken money earlier too for passing favourable orders,” the joint director said.

The accused would be produced before a special CBI court for remand tomorrow.

Source – PTI


Press Release
New Delhi , 29-08-2011

The Central Bureau of Investigation has arrested a Commissioner of Income Tax, Appeal-34, Income Tax Department, Mumbai for demanding and accepting a bribe of Rs.Two lakh from the complainant.

It was alleged that a private firm engaged in copper wire manufacture had filed their Income Tax return for Assessment year 2008-09. The same was taken up for scrutiny by the Jurisdictional Income Tax Officer. After Scrutiny, the Income Tax Officer passed an order for Additional Tax Liabilities. Aggrieved by the above order, the firm went on Appeal before the Commissioner of Income Tax, Appeals-34, Income Tax Deptt. Mumbai. The Commissioner demanded an amount of Rs.25 lakh from the complainant for issuing a favourable Assessment order. After negotiation the amount was reduced to Rs.Two lakh. The Commissioner also informed that in case of failure to pay the bribe money, he will pass an order confirming the assessment demand.

A case was registered U/s 7 of Prevention of Corruption Act 1988 against Commissioner of Income Tax, Appeals 34, Income Tax Deptt., Bandra Kurla Complex, Mumbai for demanding and accepting a bribe of Rs.Two lakh for settling and issuing a favourable order in an Appeal matter pending before him.

CBI laid a trap and the accused was caught red handed while demanding and accepting a bribe of Rs.Two lakh at his office complex.

Searches are being carried out at Delhi, Gaziabad, Lucknow and Patna.



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  1. R.Nagaraja Rao says:

    Iam very ashamed to find that corruption is continuing in the Incometax department even after such a huge rally/discussion on corruption in the whole country. It is not enough that such officers are suspended and again allowed to work after five or six years so that they can recoup what they have lost earlier. Their photos should be published in the newspapers apart from confiscating allthe properties in their name. Then only these corrupt people realise their folly.
    R.Nagaraja Rao

  2. anantavardhana says:

    he should change his name as nirdaya shamekara. purchasing of assessment orders, judgement at different levels is the order of the day. In all tax laws, a new section has to be introduced, wherever there is a dispute on interpretation, the benefit of doubt should go to the assessee. this will end not only corruption but also unnecessary expenditure both for the assessee and the government.

  3. Prashant says:

    To whom so ever it may concern
    According to my view the CBI suppose to take serious action against him and CIT(A) if possible shall initiate block assessment against him under Sec.153A.

  4. JAY says:

    While so much of agitation has been happening in the country and outside and has shook the parliament on the very subject, “corruption”, it is shameful, such corrupt people simply continue their unethical working totatlly unmindful of what is happening around. this proves that corruption has taken deep roots in the country and has spread far & wide. Even if god descends dowm, he may not be able to clean up the system.
    the attitude & audacity of the concerned is schocking. corruption is vice, a disease and requires powerful de-addiction efforts

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