According to the agency, Income Tax sleuths had raided house of an individual R K Shukla in Dhinkanal, 25 kilometres from state capital Bhubanesawar, for alleged tax evasion.
Shukla approached the CBI and claimed that one I-T officer Narayan Nayak was allegedly demanding a bribe of Rs five lakh for stopping an enquiry against him, the agency said.
A trap was laid and Nayak was arrested allegedly while accepting the bribe from Shukla, the CBI said, adding searches were conducted at his residence which led the sleuths to Joint Commissioner's door steps as some of the documents seized from his house indicated Shaivanandan's involvement.
The CBI arrested Shivanandan and both were being questioned.
