Income tax commissioner Dayashankar was arrested on Monday by the anti-corruption branch of the Central Bureau of Investigation (CBI) for accepting a bribe of Rs 2 lakh from a Daman-based businessman. Dayashankar, I-T commissioner (appeals-34 ), was caught red-handed in his office at Bandra-Kurla Complex after the businessman, who is into copper wire manufacturing, approached the CBI on Friday to lodge a complaint.

Rishi Raj Singh, joint director (Mumbai-I zone), CBI, said the businessman's firm had filed I-T returns for the assessment year 2008-09. “The same was taken up for scrutiny by the jurisdictional income tax officer [ITO], who after scrutiny passed an order for additional tax liabilities,” said Singh.

According to sources, the ITO raised an I-T demand of Rs1.41 crore against the businessman, which was not due from him. After failing to convince the ITO, the businessman approached Dayashankar, who asked for a bribe to settle the matter.

"He (Dayashankar) initially demanded Rs25 lakh for issuing a favourable assessment order," said CBI deputy inspector general Abhin Modak, adding that Dayashankar told the businessman that in case of failure to pay the bribe, he would pass an order confirming the assessment demand.

The CBI verified the bribe demand by making the businessman call Dayashankar, who during the conversation initially demanded Rs25 lakh and later brought the amount down to Rs2 lakh. Subsequently, the investigating agency arrested Dayashankar on Monday as he accepted the bribe.

The CBI also conducted searches at Dayashankar's office and official residence at Hyderabad Estate in Malabar Hill. The sleuths recovered Rs8 lakh in cash and papers related to a two-storey bungalow in Noida, another bungalow in Gaziabad and properties in Delhi, Lucknow and Patna from his house.(Hindustant Times)