Section 41 : Disposal along with retention of property or liability

If any person disposes of any property or liability in any manner referred to in clauses (c), (d), (e) and (f) of sub-section (3) of Section 40, the following provisions shall apply:-

(a) In respect of property,-

(1) That person shall be deemed to have received the amount equal to the market value of that property at the time of disposal for the disposal, and

(2) When that property is re-disposed, the net outgoings made for that property until the time of disposal pursuant to this Section shall be deemed to be equal to the amount receivable.

(b) In respect of liability,-

(1) That person shall be deemed to have spent the amount equal to the market value of that liability at the time of disposal for the disposal and

(2) When that liability is re-disposed, the incomings derived for that liability pursuant to clause (1) until that time shall be deemed to be equal to the amount of expenses.