TMI Blog2017 (4) TMI 909X X X X Extracts X X X X X X X X Extracts X X X X ..... ation 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 b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4,18,70,540 12,31,000 2. 2007-08 23.10.07 23.10.07 8,39,051 (firm) 4,90,96,061 (Co) 21.08.2013 6,52,40,210 1,34,87,839 3. 2008-09 29.07.08 1,00,15,920 21.08.2013 2,61,70,510 96,52,840 4. 2009-10 08.09.09 15,79,84,730 21.08.2013 16,49,96,890 70,12,159 5. 2010-11 20.08.10 41,65,54,860 21.08.2013 42,93,52,800 1,27,97,940 6. 2011-12 29.09.11 69,12,47,360 21.08.2013 70,10,76,190 98,28,831 7. 2012-13 11.09.12 40,20,09,300 21.08.2013 40,84,86,750 64,77,448 4. In a statement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 36.5 36.5 36.5 36.5 36.5 12.2 Average poultry droppings per bird in Kgs. 14 14 14 14 14 14 4.67 Average poultry droppings per annum in Tonnes 2800 3080 3500 4340 5320 6020 2055 Average poultry droppings used for own consumption per Annum in Tonns 1680 1848 2100 2604 3192 3612 1233 Average poultry droppings at contract farms in Tonns 840 924 1050 1302 1596 1806 617 Average poultry droppings sales per annum in Tonn 280 308 350 434 532 602 205 Av ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expert opinion provided by the assessee had fixed average feed consumption of a bird at 55 to 60 KGs for a 60-week period. On an annual basis, as per the A.O., such feed consumption came to 49.8 KGs per annum per bird. Since assessee had itself estimated poultry dropping of 14 KGs on a feed of 36.5 KGs, as per the A.O., on feed of 49.8 KGs, the poultry dropping per bird would work out to 19.10 Kgs. As per the A.O., assessee itself had estimated the price of this manure between ₹ 500 to ₹ 1000 and therefore, and the average price came to ₹ 750 per ton for assessment year 2006-07. According to him, there could have been an increase of ₹ 25/- per annum on such sale price. Average price of the poultry feed was fixed by him in accordance with following table:- Assessment Year Average price per ton 2006-07 ₹ 750 2007-08 ₹ 775 2008-09 ₹ 800 2009-10 Rs. 825 2010-11 ₹ 850 2011-12 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n would result in a lower number of birds than the average stock admitted by the assessee. 8. Per contra, the Ld. A.R. supported the order of the CIT(Appeals). 9. We have perused the orders and heard the rival contentions. While estimating the yield of poultry dropping, the Assessing Officer admittedly had relied on an expert opinion given by Prof. D. Narahari, Senior Vice President of Indian Poultry Science Association. The extract of such opinion as it appears in assessment order is reproduced as under:- 1. What could be the average life time of a parent bird? The commercial life (Not its full biological life) of a broiler parent bird is about 60 weeks. 2. What could be the average consumption of feed (in kgs) during the life time of a parent bird? During the above commercial life, a parent bird will consume around 55-60 Kgs of feed. 3. What could be the average poultry droppings of a parent bird during its life time? What could be the average poultry droppings of a parent bird with reference to its consumption (% of average consumption)? (i.e. poultry droppings (in kgs) of a parent bird in its life time / Average consumption of parent bird in its life time) The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of arriving at bird droppings income. The assessing officer is directed to work out the bird droppings (manure) after excluding birds grown at contracting farms. Accordingly, the grounds raised in this regard are allowed for all the asst. years i.e. 2006-07 to 2012-13. 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. 11. This leaves us to one more ground raised by the Revenue for assessment year 2010-11 which assails deletion of addition of ₹ 2,37,99,820/- made by the A.O. for unexplained investment, under Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f ₹ 2,37,99,820/-. The CIT(Appeals) accepted this contention and deleted the addition. 14. Now before us, the Ld. Departmental Representative submitted that it was essential to correctly work out the unaccounted income from sale of bird droppings for assessment years 2006-07 to 2010-11. As per the Ld. D.R., the Ld. CIT(Appeals) had not made verification of such amount with the investment made by the assessee before allowing telescoping. 15. Per contra, Ld. A.R. supported the order of the CIT(Appeals). 16. We have perused the orders and heard the rival contentions. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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