ADMINISTRATOR UNIT TRUST OF INDIA vs B.M.MALANI .

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 matured on the notice date. The Court affirmed the High Court's ruling that the respondent was entitled to redeem the units at Rs.10 per unit after five years, and addressed the respondent's claim for dividends. The appeal by the Income Tax Department was dismissed, upholding the High Court's decision.