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2017 (4) TMI 909 - AT - Income TaxSale of manure in the nature of poultry droppings - CIT(Appeals) directed to exclude dropping of birds reared by contract farmers from stock available for sale - Assessment u/s 153A - Held that:- Assessing Officer had accepted the expert opinion insofar as it related to feed consumption of bird at 55-60 KGs for 60-weeks. However, when it came to poultry dropping, he refused to consider the opinion of the said expert. The said expert had clearly mentioned that recoverable manure would not exceed 10 KGs per bird. In our opinion, when reliance is placed on the opinion of an expert, it cannot be considered in part and rejected in part. It should have been considered in whole. Since the addition made by the A.O. is based on the expert opinion of Prof. D. Narahari, Senior Vice President of Indian Poultry Science Association, we are of the opinion that the CIT(Appeals) was justified in directing the A.O. to accept the expert opinion in toto. Assessee itself had estimated the droppings per year per bird at 14 KGs, which was higher than the estimation of 10 KGs per bird made by the expert. We are, therefore, of the opinion that the order of the CIT(Appeals) cannot be faulted on this count. Insofar as bird droppings were concerned, Assessing Officer himself had excluded bird droppings of poultry raised by contracting farms. Such reduction in bird droppings, as noted by the Ld. CIT(Appeals), was to be based on the number of birds grown at contracting farms and not based on the number of birds held in closing stock as done by the Assessing Officer. Just because assessee had valued stock of birds considering a particular strength, we cannot say that poultry droppings of birds under contact farming were not to be excluded. We are of the opinion that the CIT(Appeals) was fair in giving such directions. We do not find any reason to interfere with the order of the CIT(Appeals) in this regard also. Unexplained investment addition under Section 69B - Held that:- Assessee had estimated and admitted unaccounted income from sale of bird droppings and broken eggs during the course of assessment proceedings before the Assessing Officer. We have already upheld the order of the CIT(Appeals) with regard to deletion of additions made by the Ld. A.O. on additional income estimated from sale of bird droppings. In our opinion, the finding of the Ld. CIT(Appeals) that additional income from bird droppings for various assessment years covered by the search assessment was adequate to meet the onmoney payment of ₹ 2,37,99,820/- was justified. Telescoping was rightly allowed by the Ld. CIT(Appeals). We do not find any reason to interfere with the order of the CIT(Appeals) on this aspect also. Revenue appeal dismissed.
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