Section 11 - Amendment of section 41 - Taxation Laws (Amendment) Act, 1970

11. Amendment of section 41. In section 41 of the Income-tax Act, (a) after sub-section (2), the following sub-section shall be inserted, namely:- (2A) Where any structure or work in or in connection with a building, being the structure or work referred to in sub-section (1A) of section 32, is sold, discarded, demolished, destroyed or is surrendered as a result of the determination of the lease or other right of occupancy in respect of the building and the moneys payable in respect of such structure or work together with the amount of scrap value, if any, exceed the written down value, so much of the excess as does not exceed the difference between the actual cost of the structure or work and its written down value shall be chargeable to income-tax as income of the business or profession of the previous year in which the moneys payable for the structure or work became due. Explanation 1.-Where the moneys payable in respect of the structure or work referred to in this sub-section become due in a previous year in which the business or profession for the purpose of which the structure or work was constructed or done is no longer in existence, the provisions of this sub-section shall apply as if the business or profession were in existence in that previous year. Explanation 2.-For the purposes of this sub-section, the expression moneys payable and the expression sold shall have the same meanings as in sub-section (IA) of section 32. ; (b) in sub-section (5), after the word, brackets and figure sub-section (2), , the word, brackets, figure and letter sub-section (2A), shall be inserted.