CBI sleuths barged into a senior income-tax official’s home on Wednesday morning while he was allegedly demanding that a portion of a Rs 30-lakh bribe be handed to him only in Rs 500 and Rs 1,000 notes.

Jugal Kishore, a member of the income-tax department’s appellate body, was arrested along with two employees of a security services company. The duo were allegedly handing over Rs 2 lakh to Kishore on behalf of the owner of a chartered accountancy firm, who was also arrested.

The CBI’s anti-corruption wing received a tip-off about the deal. “We came to know that Sajjan Kumar Tulsian and Company had approached Kishore and he had agreed to help the firm by breaking the law. But we had no idea how much the company would pay Kishore,” said an official.

The informant even told the CBI that money would change hands on Wednesday morning in Kishore’s Nizam Palace quarters.

“Accordingly, we took up position outside the flat in the morning. Around 8.30am, two men went inside with a bag. We forced our way in a few minutes later,” said the official.

The two men, identified as Subhash Barjatia and Nishant Jain, were sitting on chairs with the bag, containing Rs 2 lakh, in front of them.

“A packet containing Rs 28 lakh was lying on the table. Kishore failed to explain where the money came from,” added the official.

Barjatia and Jain told the officials that they were sent by Sajjan Kumar Tulsian. The sleuths raided his house in Ballygunge and arrested him.

According to the CBI, Kishore took Rs 28 lakh but refused to accept the second consignment of Rs 2 lakh because it was in Rs 100 notes.

“He asked Barjatia and Jain to take back the money and come back with the amount in Rs 500 and Rs 1,000 notes,” said an official.

The agency is going through Kishore’s bank statements and other financial documents to find out whether he had taken bribes earlier or not.