Development rebate reserve utilization: breaching the reserve-use restriction triggers withdrawal of the rebate even if transfer penalties are condoned. The circular explains that a condition of the development rebate is creation of a reserve by debiting profit and loss and crediting a reserve subject to an eight-year prohibition on utilisation for dividends, remittance, or asset creation abroad. Utilisation of that reserve within the restricted period, including crediting it to proprietor's capital account after sale to Government, amounts to breach and requires withdrawal of the rebate. A proviso that mitigates penalties for transfer or sale does not condone breaches of the reserve-utilisation condition, which independently leads to forfeiture of the rebate.