On April 25, 2025, the Central Bureau of Investigation (CBI) arrested an IRS officer (Deputy Commissioner of Income Tax) and a private individual for allegedly conspiring to sabotage the Government of India’s Faceless Scheme of Income Tax Assessment. This scheme was introduced to enhance transparency and reduce direct human interaction in tax assessments, thereby aiming to curb corruption. The arrested individuals are accused of leaking confidential information such as the identity of assessing officers and case details in high-value scrutiny cases, in exchange for bribes. CBI’s preliminary investigation indicates they contacted various taxpayers, promising favorable outcomes in pending assessments in return for financial benefits. The arrests follow earlier searches conducted on February 6, 2025, across multiple cities including Delhi, Mumbai, Bengaluru, and Kottayam, during which documents and digital evidence were recovered. The case originated from a complaint by the Income Tax Department, prompting a CBI enquiry that led to a formal case against several income tax officials, chartered accountants, and a private individual. The arrested persons are being presented before the jurisdictional court. The investigation remains ongoing.
CENTRAL BUREAU OF INVESTIGATION
(INFORMATION SECTION)
5-B, CGO COMPLEX, LODHI ROAD
NEW DELHI- 110003
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CBI arrests two accused including an IRS Officer and a private person on allegations of involvement in sabotaging the Faceless Scheme of Income Tax Assessment
New Delhi
Dated 25.04.2025
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 (Kera)a), etc. Various incriminating documents, evidences of payment of undue gratification and some digital electronic evidences were recovered during searches.
Initially a compliant 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.
