The Central Bureau of Investigation (CBI) on Thursday conducted searches across 18 locations nationwide after registering a case against an Indian Revenue Service (IRS) officer and several Income Tax (IT) officials for allegedly sharing sensitive data related to pending tax assessments. The accused reportedly bypassed the government's faceless assessment system, providing confidential details to a group of chartered accountants (CAs), officials said.
Key Accused in the Case
According to the CBI First Information Report (FIR), those booked include:
- Vijayendra R, Deputy Commissioner of Income Tax (posted at Jhandewalan office, New Delhi)
- Dinesh Kumar Agrawal, purported CA
- Dinesh Kumar Verma and Binayak Sharma, Income Tax inspectors
- Five chartered accountants: Shivratan Mangelal Singrodia, Bhavesh Parshottambhai Rakholia, Prathik Lenin, Malik Girish Anand and Sushil Kumar
Illegal Access to Faceless Assessment System
The government introduced the Faceless Assessment Scheme to eliminate human intervention between taxpayers and tax officials, ensuring transparency and minimizing corruption. However, the accused individuals allegedly undermined this system by revealing the identities of assessing officers (AOs) and appellate officers to certain assessees for monetary benefits.
The CBI stated that the group of CAs, in collaboration with the tax officials, gained unauthorized access to sensitive income tax data, including details of pending assessments, appeals, and high-value refund cases. They allegedly approached assessees and their representatives, offering to manipulate case outcomes in exchange for illicit payments.
Nationwide Raids and Evidence Collection
The CBI carried out searches in Delhi, Mumbai, Thane, West Champaran (Bihar), Bengaluru, Kottayam (Kerala), and other locations. During the raids, investigators recovered incriminating documents, digital records, and evidence indicating payments of undue gratification.
How the Scam Unfolded
The Income Tax department flagged the case after conducting a search on Dinesh Kumar Agrawal last year. Analyzing his phone data, officials uncovered a network of CAs who allegedly disclosed information about assessing officers handling faceless tax assessments. The preliminary inquiry revealed that:
- Agrawal, either directly or through intermediaries, contacted assessees and offered favorable settlements in exchange for financial incentives.
- Chats retrieved from Agrawal’s phone included conversations with Deputy Commissioner Vijayendra R, allegedly discussing assessment details and pending case information.
- The accused IRS officer and IT inspectors purportedly leaked confidential data to Agrawal, which he then shared with other CAs to influence faceless assessment proceedings.
Attempts to Sabotage Faceless Assessment
The CBI highlighted that this misconduct directly undermined the Faceless Assessment Scheme, a key tax reform initiative aimed at curbing corruption. By disclosing sensitive details, the accused facilitated direct interactions between assessees and tax officials, defeating the purpose of the scheme.
"The accused were trying to sabotage the Faceless Scheme of Assessment introduced by the Government of India," the CBI spokesperson stated.
Political Links and Further Investigations
Documents recovered during the investigation suggest that Agrawal projected himself as a political influencer, claiming association with Bharatiya Janata Party (BJP) leaders. He also allegedly worked as a liaison for various government departments.
The CBI's ongoing probe is expected to uncover further details about the extent of this network and whether more officials or professionals were involved in the racket.
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