Section 10(26AAB) exemption extends to market committees regulating fish, poultry and eggs under the State definition of agricultural produce.

The exemption under section 10(26AAB) applies to an agricultural produce market committee or board constituted under law to regulate marketing of agricultural produce. Where the relevant State enactment defines agricultural produce broadly and expressly includes eggs, poultry and fish, those commodities fall within the statutory expression adopted for the Income-tax Act. A committee that regulates and facilitates marketing of notified produce, rather than trading on its own behalf, satisfies the exemption conditions and is entitled to relief.

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Issues: Whether the income of a marketing committee regulating fish, poultry and eggs was eligible for exemption under section 10(26AAB) of the Income-tax Act, 1961.

Analysis: The exemption under section 10(26AAB) applies to an agricultural produce market committee or board constituted under law for regulating the marketing of agricultural produce. The relevant State law defined agricultural produce broadly and its Schedule expressly included animal husbandry products such as eggs and poultry, as well as pisciculture products such as fish. The statutory scheme showed that the committee's function was to regulate and facilitate marketing of notified produce, not to carry on trading on its own behalf. Since the Income-tax Act adopted the wider concept of agricultural produce from the State enactment, the commodities handled by the committee fell within that expression.

Conclusion: The committee was entitled to exemption under section 10(26AAB), and the Revenue's appeals were rejected.

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