A chemical company got trapped into a high-level Tax inquiry while claiming depreciation of a new unit. The tax office enquired about the date of commencement of the unit’s operation which was substantiated by a series of documents viz. excise passing, electric unit consumption, job cards, labor contractors invoices, etc

It took 3 rounds of inquiry as all information was not submitted in 1st and 2nd round and therefore it made matters more complex. And there are series of such case studies.

All that company needs to do is to submit all documents in the 1st round by taking the matter seriously. Company should follow up with consultant and ensure notice is given due importance