THE COMMISSIONER OF INCOME-TAX, MADRAS vs SRI MEENAKSHI MILLS LTD. & ORS.

The Supreme Court held that the High Court erred in interfering with the findings of fact by the appellate Tribunal under Section 66(1) of the Indian Income-tax Act, 1922. The Court emphasized that the High Court must accept the Tribunal's findings unless challenged by the party seeking a reference. The Court concluded that the transactions in question were part of a basic arrangement between the creditor and debtor, and thus the appeals by the Commissioner were allowed, reinstating the Tribunal's assessment of the assessees.