Administrator, Unit Trust Of India vs B.M. Malani & Ors

The Supreme Court interpreted sub-section (3) of Section 226 of the Income Tax Act, 1961, holding that the Income Tax Department's action to sell units without the assessee's consent was improper, as the value of the units had not become due at the time of notice. The Court upheld the High Court's decision that the respondent was entitled to the redemption value of the units at Rs.10 per unit after five years, rejecting the appellant's claim that the units could be sold due to the respondent's defaulter status. The appeal by the Income Tax Department was dismissed, affirming the High Court's ruling.