SC Restores Bribery Conviction of Income Tax Inspector; Senior Officer Acquittal Upheld

The case arose from a CBI trap laid on a complaint by a taxpayer (PW1), who alleged that an Income Tax Inspector (A2) demanded a bribe of Rs. 5 lakhs on behalf of the Assessing Officer (A1) for clearing an assessment matter. The complainant approached the CBI, leading to a trap where Rs. 2 lakhs in marked currency was handed over to A2 and recovered from his possession.

The Trial Court convicted both A1 and A2 under Section 120B IPC read with Section 7 of the Prevention of Corruption Act, along with separate conviction under Section 7. However, the High Court acquitted both accused, holding that neither conspiracy nor demand of bribe was proved. Aggrieved, the CBI approached the Supreme Court.

Main Issue: Whether conviction under the Prevention of Corruption Act can be sustained against one accused when conspiracy fails and whether demand and acceptance of bribe were duly proved.

SC’s Decision: The Supreme Court partly allowed the appeal and restored the conviction of A2 (Income Tax Inspector) under Section 7 of the Prevention of Corruption Act, while upholding the acquittal of A1. The Court held that although conspiracy was not established, the charge of demand and acceptance of bribe against A2 stood independently proved through the testimony of the complainant, corroborated by the trap laying officer and independent witnesses. Recovery of tainted money, positive chemical test, and conduct of the accused further strengthened the prosecution case.

It was clarified that failure to prove conspiracy does not invalidate a separate charge of demand and acceptance where evidence exists against an individual accused. However, in absence of any direct evidence of demand by A1, his acquittal was justified. Therefore, the circumstances and age of A2, the Court reduced the sentence from four years to one year rigorous imprisonment while maintaining the fine.

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