A chartered accountant Dinesh Kumar Agarwal  and an IRS officer with the rank of Deputy Commissioner of Income Tax Vijayendra, a 2015-batch Indian Revenue Service (IRS) officer posted at the department’s Jhandewalan office in Delhi were among the first people the CBI arrested today in relation to their involvement in an ongoing investigation into a case involving the sabotage of the Faceless Scheme of Income Tax Assessment.

According to the results of the investigation, the arrested private individual and the Dy. Commissioner of Income Tax conspired with others to contact assesses of high-value IT assessment cases that were still pending. They promised favorable orders in their income tax cases under investigation in exchange for financial benefits.

As you may remember, the Indian government implemented the Faceless Scheme of Income Tax Assessment as a progressive change in tax administration. Its goals were to decrease human interaction, boost transparency, and thwart corruption. The reason this program is dubbed “Faceless” is that the assesse will not be able to identify the person doing the assessments and will not be able to see the face of their Assessing Officer. As a result, there will be less corruption, discretion, and interface.

However, these accused individuals have been secretly gathering and sharing with the Assesses sensitive insider information about this scheme, such as the identity of the assessment officer, the issues being investigated, etc., related to pending high-profile assessment/appeal cases, in order to obtain bribes. The defendants who were apprehended are being brought before the court of jurisdiction.

On February 6, 2025, the CBI previously searched 18 locations in Delhi, Mumbai, Thane, West Champaran (Bihar), Bengaluru, Kottayam (Kerala), and other locations. During searches, a number of damning documents, proof of payment for inappropriate satisfaction, and some digital electronic evidence were found.

In this regard, the Income Tax Department first filed a complaint, and the CBI then started an investigation. Following the discovery of prima facie evidence, the CBI filed a case against one Deputy Commissioner (IRS)(IT), two Inspectors of the Income Tax Department, five chartered accountants, one private individual, and unidentified others on the grounds that the accused had attempted to undermine and thwart the goals of the Government of India’s “Faceless Scheme of Assessment.”

The investigation is still ongoing.