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Here's what the National Federation Case Book has to say:
"The official erroneously grants Team B a time-out in a situation when Team B cannot have one. What happens now?
Ruling: Team B is entitled to use the time-out since it was granted. The time-out once granted cannot be revoked and is charged to Team B. All privileges and rights permitted during a charged time-out are available to both teams."
(5.8.3E)
I did it once myself on an OOB play near the end of a JV game. The ball was at the disposal of the inbounding team, when the defense requested a time-out, which I granted. I knew in a moment I had erred, but I may have been the only one in the gym who did, and I wasn't talking. No one said a word. The time-out was used, play continued, and I learned from the mistake.
Sven
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