As per the official order, Tyagi would now hold the charge of Principal DGIT (Training) at the National Academy of Direct Taxes (NADT).
The senior women officer had alleged that her boss and also chief of Central Board of Direct Taxes (CBDT) P.C. Mody had stalled her posting allegedly using a previously disposed of vigilance case as a "weapon of blackmail." A section of media reported this, creating ripples in the tax department.
An order from CBDT dated October 3 said that Tyagi has been promoted to the grade of Principal Chief Commissioner of Income Tax (Pr CCIT) consequent upon approval of the competent authority.
Tyagi, Chief Commissioner of Income Tax (Unit 2) in Mumbai, is learnt to have complained against Mody and written to Union Finance Minister Nirmala Sitharaman.
An official aware of the development said that Tyagi has been promoted and it is a proof that her charges were false.
"She has been duly promoted. She has been posted at NADT. Now someone may say that why she has been posted there. No one is posted as per his/her choice. It depends on the department's requirement," he said.
Tyagi handled some of the high-profile cases of tax evasion including Deepak Kochhar-ICICI Bank case and the one related to Jet Airways.
( With inputs from IANS )