CBI on Monday night arrested a Deputy Commissioner Income Tax in Hyderabad on the charge of accepting a bribe of Rs.23 lakh through a middleman.

Sources in the investigative agency said that the accused Jai Prakash, posted as Deputy Commissioner Income Tax in Hyderabad's Karim Nagar, had visited premises of a businessman on October 16 along with his Inspector Ramu where he had allegedly demanded Rs.25 lakh as bribe for settling tax issues.

The deal was allegedly planned to be materialised through the auditor of the businessman, Sivakumar, CBI sources said.

This morning the businessman had allegedly paid Rs.2 lakh from the agreed amount to Inspector Ramu through his auditor, they said.

A team of CBI's Anti-Corruption Bureau in Hyderabad laid a trap this evening when the auditor was going to hand over the remaining money to Jai Prakash.

CBI has seized Rs.23 lakh bribe and arrested Jai Prakash, Shiva Kumar and Ramu.