TMI Blog2023 (2) TMI 1075X X X X Extracts X X X X X X X X Extracts X X X X ..... sold to the traders. It is on this account that the fee is earned by the respondent/assessee. The fee that the respondent/assessee obtains helps the purpose for which it is constituted i.e., regulating the marketing of agricultural produce.Since agricultural produce is not defined in the 1961 Act, the Tribunal, as noted above, has taken recourse to Section 2 of the 1998 Act. The respondent/assessee has been constituted under the Delhi Agricultural Marketing (Regulation) Act 1976 and was appointed as regulator under the 1998 Act to facilitate trading in fish, poultry and eggs. The definition of agricultural produce, as contained in Section 2(1)(a) of the 1998 Act, read with schedule, as extracted above, is wide, which includes all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... revenue, is whether the income received by way of fee by the respondent/assessee, is amenable to deduction under Section 10(26AAB) of the Income Tax Act, 1961 [in short, 1961 Act ]. 6. The facts which have emerged from the record [and which are not in dispute], are the following: (i) The respondent/assessee had filed its return on 29.09.2012 declaring a loss of Rs.2,23,585/- after excluding Rs.6,04,06,259/- from its total income by taking recourse to the provisions of Section 10(26AAB) of the 1961 Act. (ii) The respondent/assessee is an Agricultural Produce Marketing Committee. (iii) The respondent/assessee s return was subjected to scrutiny, whereupon an assessment order was framed under Section 143(3) of the 1961 Act. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hether processed or unprocessed, of agricultural, horticulture, apiculture, viticulture, pisciculture, sericulture, animal husbandry, fleeces and skins of animals and forest products as are specified in the Schedule and such other produce as may be declared by the Government by notification to be an agricultural produce and also includes admixture of two or more of such produce. xxx xxx xxx I. Animal Husbandry Products 1. Eggs 2. Butter 3. Poultry 4. Cattle Meat 5. Ghee 6. Goat Meat 7. Milk Milk II. Apiculture 1. Honey III. Cattle Feeds IV. Cereals V. Condiments, Spices and others VI. Fibers VII. Fruits VIII. Grass a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spect of various products. xxx xxx xxx 23. As discussed above, the word agricultural produce, used in connection with APMC connotes a very wide meaning bringing within its preview a large gamut of commodities besides agricultural products. Since the income accrues to the APMCs from pursuing these activities, the Income Tax Act, also perceives a wider meaning by referring to the DAPM. xxx xxx xxx 25. It is however observed that the assessee has claimed a loss of Rs.2,23,585/- in her return of Income. The same represents depreciation for the year, which has not been set off against the profits/income of the committee. In fact, the assessee has committed a mistake in filing the return, whereby the figure of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t disputed by Mr Hossain that the definition of the expression agricultural produce is not provided in the 1961 Act. Before we proceed further, it would be relevant to extract the provision in issue, i.e., Section 10(26AAB) of the 1961 Act: Section 10(26AAB): any income of an agricultural produce market committee or board constituted under any law for the time being in force for the purpose of regulating the marketing of agricultural produce [Emphasis is ours] 11.1, This definition, if broken down, would entail the following: (i) It concerns any income of the Agricultural Produce Market Committee or Board. (ii) The said Agricultural Produce Market Committee or Board should be one, which is, constituted un ..... X X X X Extracts X X X X X X X X Extracts X X X X
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