The Officer demanded Rs 10,000 initially from Ahamed Meeran to submit the auditing report for this year, but scaled down the demand to Rs 4,000 after negotiations, Muthuraj, Inspector, Directorate of Vigilance and Anti Corruption, said.
However Meeran later filed a complaint with DVAC at Theni.
DVAC officials laid a trap by giving Meeran Rs 4,000 worth chemically laced currency notesto be paid to the CTO.
The man was caught red-handed while accepting the bribe at the Commercial Tax Office at Uthamapalayam.