Central Bureau of Investigation Vs V. Nagaraj (Principal Special Court for CBI Cases, Bengaluru)
Summary: In CBI v. V. Nagaraj & Naginchand Kincha, decided on 24 August 2026, the Principal Special Court for CBI Cases, Bengaluru, convicted an Income Tax Officer & a Chartered Accountant for conspiring to demand illegal gratification from an assessee in connection with reassessment proceedings.
A.K. Halim, the complainant, had been filing income-tax returns before Ward 4(3), Bengaluru. The returns concerned AYs 2008–09 & 2009–10. In June 2012, ITO V. Nagaraj issued a notice u/s 148 stating that income of approximately ₹3.28 crore had escaped assessment. Further proceedings were initiated concerning the complainant’s capital gains.
According to the prosecution, Nagaraj informed Halim that his tax liability would be approximately ₹80 lakh. He allegedly demanded ₹20 lakh as bribe for concluding the assessments by restricting the tax liability to approximately ₹30 lakh. Between 1 September & 6 September 2012, Nagaraj repeatedly contacted Halim & directed him to coordinate with Chartered Accountant Naginchand Kincha, to whom the assessment order had been handed over.
As Halim was unwilling to pay the bribe, he approached CBI with a written complaint & recordings of conversations. After verification, CBI registered RC No.12(A)/2012 on 8 September 2012.
Trap proceedings
CBI arranged a trap using ₹5 lakh in phenolphthalein-treated currency notes. Halim entered Kincha’s office while the trap team waited outside. After the amount was delivered, he gave the predetermined signal, “please arrange train ticket.”
