Section 46 : Involuntary disposal of property or liability with substitution:
1) If any person, no later than one year of the involuntary disposal of any property in any mode out of the modes mentioned in Sub-section (1) of Section 40, acquires ownership over other property of similar type in lieu of that property and makes request in writing to have this Section applied, it shall be as follows:-

a) That person shall be deemed to have received, for the disposal, an amount equal to the sum of the following amounts:-

      (1) Net expenses for that property immediately before the disposal, and

        (2) If the amount derived from the disposal exceeds the expenses incurred in acquiring the substituted property, the amount of such excess, and

            

b) The person shall be deemed to have incurred expenses in a sum equal to the sum of the following amounts, in acquiring the substituted property.

(1) Net expenses for the disposed property immediately before the disposal, and

(2) If the expenses incurred in acquiring the substituted property exceed the amount derived from the disposal, the amount of such excess.

2) If any person, no later than one year of the involuntary disposal of any liability in any mode out of the modes mentioned in Sub-section (2) of Section 40, bears other liability of similar type in lieu of that liability and makes request in writing to have this Section applied, it shall be as follows:-

a) That person shall be deemed to have incurred expenses, for the disposal, in a sum to be set by subtracting the amount mentioned in clause (2) from the amount mentioned in clause (1):

(1) Amount for net incomes for that liability immediately before the disposal, and

(2) If the expenses incurred in making that disposal exceed the amount in assuming the substituted liability, the amount of such excess expenses, and

c) The person shall be deemed to have received a sum equal to the sum of the following amounts, in acquiring the substituted liability:

(1) Net incomes for the disposed liability immediately before the disposal, and

(2) If the amount derived in assuming the substituted liability exceeds the expenses incurred in making the disposal, the amount of such excess.

(3) The circumstances where involuntary disposal is created after substitution of one security of any entity for another security as a result of a change in the security of the interest in the entity or restructuring of the entity shall be as prescribed.