CBI on Monday arrested a Deputy Commissioner of Income Tax from Tirupati in Andhra Pradesh for allegedly taking a bribe of Rs three lakh in lieu of closing a few tax liability cases.

CBI sources said Deputy Commissioner, Income Tax, Fazulullah was nabbed after he allegedly received Rs three lakh, which was part payment of the Rs five lakh bribe for closing tax liability cases against two doctors.

They said the I-T officer allegedly struck the deal with Chartered Accountant, Pengaluri Musaliah, for closing cases of pending taxes against his clients and had demanded Rs five lakh for the same.

When the first installment of the alleged bribe was being handed over to the officer in his office, the CBI team nabbed him and recovered Rs three lakh from his drawer.

"Searches are being carried out and DCIT has been taken into custody," a CBI spokesperson said here.