Agricultural produce market committee income exemption applies to fee income from regulating fish, poultry and eggs.

Section 10(26AAB) exempts any income of an agricultural produce market committee constituted to regulate the marketing of agricultural produce, so the decisive question is whether the committee was formed for that statutory purpose and whether the income has a nexus with it. Applying the Delhi Agricultural Produce Marketing (Regulation) Act, 1998 definition of agricultural produce, fish, poultry and eggs were treated as covered commodities. Fee income earned from regulating trade in those products was therefore connected with the committee's statutory function and fell within the exemption, with the result that it was not includible in total income.

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Issues: Whether the fee income earned by an Agricultural Produce Market Committee from regulating trade in fish, poultry and eggs was exempt under Section 10(26AAB) of the Income-tax Act, 1961.

Analysis: Section 10(26AAB) exempts any income of an agricultural produce market committee or board constituted under a law for regulating the marketing of agricultural produce. The expression used is "any income", not agricultural income, and therefore the decisive inquiry is whether the committee was constituted for the statutory purpose and whether its income had a nexus with that purpose. Since the Income-tax Act does not define "agricultural produce", the relevant definition in Section 2(1)(a) of the Delhi Agricultural Produce Marketing (Regulation) Act, 1998 was applied. That definition is broad and includes fish, poultry and eggs within the schedule of agricultural produce. The fee earned by the committee arose from regulating the marketing of those products and was connected with its statutory function.

Conclusion: The fee income was covered by Section 10(26AAB) of the Income-tax Act, 1961 and was not liable to be included in the assessee's total income.

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