Taxpayer Data Misuse Allegations: CBI Registers Case Against Income Tax Officials

The Central Bureau of Investigation (CBI) has registered a case against six individuals, including five officials of the Income Tax Department in Hyderabad—two Income Tax Inspectors and three Senior Tax Assistants—along with a private Chartered Accountant, on allegations of cheating Income Tax assessees.

Allegations of Fraud and Misuse of Taxpayer Data

According to the CBI, the accused public servants allegedly conspired to misuse confidential taxpayer data provided by the Income Tax Department, which included details of individuals claiming high-income tax refunds. Instead of following due process, the officials allegedly contacted these taxpayers directly, threatening them with hefty penalties and coercing them for personal gains.

The illicit scheme reportedly involved the transfer of funds into the bank accounts of the Chartered Accountant, who then funneled the money into the accounts of the implicated tax officials.

Search Operations Yield Incriminating Evidence

The CBI conducted searches at six locations across Hyderabad, covering both official and residential premises linked to the accused. The searches resulted in the recovery of several incriminating documents, which are now being scrutinized as part of the ongoing investigation.

Legal Implications and Ongoing Investigation

The case highlights serious concerns regarding data misuse and corruption within the Income Tax Department. Authorities have assured that strict action will be taken against those found guilty.

CBI officials stated that the investigation is actively progressing, and further details are expected as the case unfolds.

Read More: CBDT Notifies New Disclosure Rules for MSME Payments, Share Buybacks, and Loans

• Author
• Recent Posts

Mariya Paliwala

Mariya is theSenior Editor at JurisHour. She has 5+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started as a freelance tax reporter in the leading online legal news companies like LiveLaw & Taxscan.

Latest posts by Mariya Paliwala (see all)

• Lithium-Ion Batteries for Mobile Phones Attract 12% IGST, Not 28%: CESTAT - July 11, 2025
• Bombay High Court Refuses to Order Retrospective Customs Duty Correction Over Alleged Tariff Error - July 11, 2025
• Refund from Electronic Cash Ledger Cannot Be Arbitrarily Withheld: Supreme Court Dismisses Centre’s Plea - July 11, 2025