COMMISSIONER OF INCOME TAX, TAMIL NADU vs S. BALASUBRAMANIAN

The Supreme Court addressed the applicability of Section 155(5) of the Income-tax Act, 1961, in relation to the withdrawal of development rebate granted to a Hindu undivided family (HUF) for assessment years 1960-61 to 1965-66. The Court upheld the findings of the Appellate Tribunal and the High Court, concluding that the HUF did not sell or transfer the machinery and thus Section 155(5) was not applicable. Consequently, the Income-tax officer's attempt to withdraw the development rebate was deemed incorrect, affirming the lower courts' decisions.