Section 56 : Transaction between entity and beneficiary:
1) If a property is disposed through transfer of ownership over the property in any manner of distribution between an entity and its beneficiary or in any other manner subject to Section 45, it shall be as follows:-

a) The transferor of the property shall be deemed to have received, from the disposal, an amount equal to the market value of the property immediately before the disposal, and

b) The transferee of the property shall be deemed to have incurred cost in a sum equal to that mentioned in clause (a) in acquiring the property

2) If any liability is disposed through transfer of the liability between any entity and its beneficiary subject to Section 45, it shall be as follows:-

a) The transferor of the liability shall be deemed to have incurred cost, in disposing the liability, in a sum equal to the market value of the liability immediately before the disposal, and

c) The transferee of the liability shall be deemed to have received an amount equal to that mentioned in clause (a) in assuming the liability.

3) If any entity distributes dividends except profits as dividends to any beneficiary, the amount of such dividends shall be included in computing the income of the entity.

Provided that, provisions may be made to exclude the matters contained in this Sub-section in any circumstance as prescribed