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“Section 45(1)”

Section References (mined)Section 45Section 45(1)146 judgments

The decision most relied on for Section 45(1) is CIT v. Ghanshyam (HUF) (315 ITR 1), cited in 363 judgments on BharatTax.

Leading authorities on Section 45(1)

CIT v. Ghanshyam (HUF)
315 ITR 1 · 2009 · Supreme Court
363
citing judgments

Interest received under Section 28 of the Land Acquisition Act, 1894, is considered part of the enhanced compensation on compulsory acquisition of land. It is taxable as 'capital gains' and not separately as 'interest income' under the head Income from Other Sources.

CIT v. Sohana Woollen Mills
296 ITR 238 · 2008 · High Court
180
citing judgments

A mere audit objection, by itself, is insufficient to infer that an Assessing Officer's order is erroneous or prejudicial to the interest of the Revenue for the purpose of initiating revisional proceedings.

Chaturbhuj Dwarkadas Kapadia v. CIT
260 ITR 491 · 2003 · High Court
150
citing judgments

For capital gains purposes, a 'transfer' under section 2(47)(v) occurs and capital gains arise in the year when possession of the property is handed over in part performance of a contract, such as a joint development agreement. This was the settled position before the specific provisions of section 45(5A) were introduced.

CIT v. Lakhani Marketing Inc.
49 Taxmann.com 257 · 2014 · High Court
145
citing judgments

Disallowance under Section 14A of the Income Tax Act, 1961, cannot exceed the actual tax-exempt income earned by the assessee during the relevant year. If no tax-exempt income is earned, no disallowance under Section 14A is warranted.

Venkataswami Naidu & Co. v. CIT
35 ITR 594 · 1959 · Supreme Court
133
citing judgments

A transaction is considered an adventure in the nature of trade, constituting business income, if there is a pre-determination to sell an asset at a profit. Conduct prior to purchase, as well as subsequent improvements, are relevant in determining the character of the transaction.

S.G. Mercantile Corporation P. Ltd. v. CIT, Calcutta
83 ITR 700 · 1972 · Supreme Court
126
citing judgments

Income from sources not falling under any other head of income under Section 14 of the Income Tax Act is taxed under the residuary head 'income from other sources'. If income cannot be taxed under Section 45 (capital gains), it cannot be taxed at all.

CIT v. Manjula J. Shah
355 ITR 474 · 2013 · High Court
113
citing judgments

For capital assets acquired by gift or will, the indexed cost of acquisition under Section 48 is computed with reference to the year the previous owner first held the asset. The period of holding for determining if an asset is long-term also includes the previous owner's holding period, as per Section 2(42A).

Sham Lal Narula (Dr.) v. CIT
53 ITR 151 · 1964 · Supreme Court
100
citing judgments

Interest received under Section 28 of the Land Acquisition Act, 1894, on enhanced compensation does not form part of the compensation itself but is taxable as 'income from other sources', analogous to interest under Section 34 of the Act.

Judgments citing Section 45(1)

Amrinder Singh Khubber, Ambala vs. ITO, W-5, Ambala

ITA 1043/CHANDI/2019[2012-13]Status: DisposedITAT Chandigarh11 Nov 2025AY 2012-13

deals with transfer(s) by way of compulsory acquisition and not by way of transfers by way of sales etc., covered by section 45(1) of the 1961 Act. Secondly, section 45(5) of the 1961 Act talks about enhanced compensation or consideration which in terms

Hanmandlu Pampati, Karimnagar vs. Income Tax Officer, Ward-2, Karimnagar

In the result, the appeal of the assessee is allowed

ITA 229/HYD/2025[2013-14]Status: DisposedITAT Hyderabad08 Oct 2025AY 2013-14

Bench: Shri Vijay Pal Rao & Shri Madhusudan Sawdiaआ.अपी.सं / Ita No.228/Hyd/2025 (निर्धारण वर्ष/Assessment Year:2013-14) 1. Shri Srinivas Pampati, Karimnagar. Pan: Abopp0603R Vs. Income Tax Officer, Ward-2, Karimnagar. आ.अपी.सं / Ita No.229/Hyd/2025 (निर्धारण वर्ष/Assessment Year:2013-14) 2. Shri Hanmandlu Pampati, Karimnagar. Pan: Abmpp0324R Vs. Income Tax Officer, Ward-2, Karimnagar. (Appellant) (Respondent) निर्धारिती द्वारा /Assessee By: Shri Lalith Kishore Sharma, Advocate. राजस्व द्वारा / Revenue By: | Dr. Sachin Kumar, Sr-Dr सुनवाई की तारीख / Date Of Hearing: घोषणा की तारीख /Pronouncement: 17/09/2025 08/10/2025 आदेश/Order Per Madhusudan Sawdia, A.M. : These Two Appeals Are Filed By Shri Srinivas Pampati & Shri Hanmandlu Pampati ("The Assessees”), Feeling Aggrieved By The Separate Orders Passed By The Learned Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre (Nfac), Delhi (“Ld. Cit(A)"), Dated 04.12.2024 & 05.12.2024 Respectively For The A.Y. 2013-14. Since The Grounds Raised By The Assessees Are Identical, They Are Heard Together & One Consolidated Order Is Being Passed For The Sake Of Convenience & Brevity.

For Appellant: Shri Lalith Kishore SharmaFor Respondent: Dr. Sachin Kumar, SR-DR
Section 144BSection 147Section 148Section 148ASection 154Section 48Section 54F

transfer” within the meaning of section 2(47)(v) of the Act and, therefore, no capital gains could be brought to tax under section 45(1) of the Act in the impugned year. Finally, the Ld. AR prayed that the addition of Rs.1,71,13,333/- sustained ... such circumstances, the essential conditions of transfer having not been satisfied, there can be no charge of capital gains under section 45(1) of the Act in this assessment year. 9. We also note that during reassessment proceedings, the assessee had submitted photographs showing that the project was still under

Srinivas Pampati, Karimnagar vs. Income Tax Officer, Ward-2, Karimnagar

In the result, the appeal of the assessee is allowed

ITA 228/HYD/2025[2013-14]Status: DisposedITAT Hyderabad08 Oct 2025AY 2013-14

Bench: Shri Vijay Pal Rao & Shri Madhusudan Sawdia

For Appellant: Shri Lalith Kishore SharmaFor Respondent: Dr. Sachin Kumar, SR-DR
Section 144BSection 147Section 148Section 148ASection 54F

transfer” within the meaning of section 2(47)(v) of the Act and, therefore, no capital gains could be brought to tax under section 45(1) of the Act in the impugned year. Finally, the Ld. AR prayed that the addition of Rs.1,71,13,333/- sustained ... circumstances, the essential conditions of ITA Nos.228 & 229/Hyd/2025 9 transfer having not been satisfied, there can be no charge of capital gains under section 45(1) of the Act in this assessment year. 9. We also note that during reassessment proceedings, the assessee had submitted photographs showing that the project

Paras and Shubham Chaudhary Legal Heir of Kanhaiya Lal, Panchkula vs. ITO, Ward 2, Panchkula

In the result, appeal of the assessee is allowed

ITA 1236/CHANDI/2016[2007-08]Status: HeardITAT Chandigarh24 Sept 2025AY 2007-08

Bench: Shri Rajpal Yadav & Shri Krinwant Sahay

For Appellant: Shri Rishab Gupta & Shri Mukesh Aggarwal,CAsFor Respondent: Shri Vivek Vardhan, Addl. CIT Sr.DR
Section 10(37)Section 18Section 28Section 4Section 5

deals with transfer(s) by way of compulsory acquisition and not by way of transfers by way of sales etc. covered by Section 45(1) of the 1961 Act. Secondly, Section 45(5) of the 1961 Act talks about enhanced compensation or consideration which in terms

Deputy Commissioner of Income Tax, Nungambakkam vs. Sathyabama Ramachandran, Alwarthirunagar

The appeal of the revenue is dismissed

ITA 821/CHNY/2025[2017-18]Status: DisposedITAT Chennai23 Sept 2025AY 2017-18

Bench: SHRI MANU KUMAR GIRI (Judicial Member), SHRI S.R. RAGHUNATHA (Accountant Member)

For Appellant: Shri A. Raghava Simhan, C.AFor Respondent: Ms. Gouthami Manivasam, JCIT
Section 147Section 148

assessee-partner from other existing partners for reduction in profit sharing ratio would not tantamount to capital gains chargeable to tax under section 45(1) of the Act. 18. In the case on hand, the asset of the partnership firm was revalued by the partners and the difference on account

Devi Dayal, Kaithal vs. Income Tax Officer, Ward-1, Kaithal

In the result, appeal is allowed

ITA 899/CHANDI/2024[2008-09]Status: DisposedITAT Chandigarh08 Sept 2025AY 2008-09

Bench: Shri Rajpal Yadav & Shri Krinwant Sahayआयकर अपील सं./ Ita No. 899/Chd/2024 "नधा"रण वष" / Assessment Year: 2008-09 Shri Devi Dayal, Vs The Ito, Pundri Anaj Mandi, Ward – 1, Kaithal-Haryana 136026. Kaithal. "थायी लेखा सं./Pan No: Aajpd5851H अपीलाथ"/Appellant ""यथ"/Respondent Assessee By : Shri Parikshit Aggarwal, Ca & Ms. Shruti Khandelwal, Advocate Revenue By : Shri Manav Bansal, Cit, Dr Date Of Hearing : 30.07.2025 Date Of Pronouncement : 08.09.2025

For Appellant: Shri Parikshit Aggarwal, CA and Ms. Shruti Khandelwal, AdvocateFor Respondent: Shri Manav Bansal, CIT, DR
Section 249Section 253Section 3Section 5

erred in upholding that ld. AO has rightly made addition on account of capital gain resulted to the assessee in terms of Section 45(1) of the Income Tax Act. 8. The brief facts of the case are that assessee is an individual. He has filed his return of income

Shobhana Dinesh Trivedi, Valsad vs. ACIT, Vapi Circle, Vapi

In the result, the appeal filed by the Assessee is allowed for statistical purpose

ITA 1042/SRT/2024[2016-17]Status: DisposedITAT Surat30 Jul 2025AY 2016-17

Bench: Shri T.R. Senthil Kumar (Judicial Member), Shri Bijayananda Pruseth (Accountant Member)

Section 143(3)Section 45(1)Section 54

that the sale consideration adopted on receipt basis and not as per agreement. However the A.O. was of the view that as per Section 45(1) of the Act, the profit or gains arising from transfer of capital asset shall be deemed to be income of the assessee ... substantiate and buttress the grounds of appeal. Therefore, I find that the AO was correct in taking the view that as per Section 45(1) of the Act, the profit or gains arising from transfer of capital asset shall be deemed to be income of the assessee in the year

Jai Prakash Narayan Sharma, Indore vs. Assistant Commissioner of Income Tax-2(1), Indore

Appeal is allowed for statistical purpose

ITA 807/IND/2024[2016-17]Status: DisposedITAT Indore15 Jul 2025AY 2016-17

Bench: Shri B.M. Biyani

Section 143(2)Section 143(3)Section 50CSection 54

previous year in which the transfer took place. Page 9 of 13 Jai Prakash Narayan Sharma ITA No. 807/Ind/2024 - AY 2016-17 The section 45(1) does not include section 54EC exemption section in line to other exemption sections and therefore any rational given under section 54EC shall

Abusha Investment & Management Services LLP, Chennai vs. DCIT Non Corporate Circle 7(1), Chennai

In the result, appeal filed by the assessee is allowed

ITA 3417/CHNY/2024[2017-18]Status: DisposedITAT Chennai08 Jul 2025AY 2017-18

Bench: Shri Aby T. Varkey & Shri Manoj Kumar Aggarwal

For Appellant: Mr.Bhabagrahi Dash, CAFor Respondent: Mr.Shiva Srinivas, CIT
Section 2(47)Section 250Section 45(1)Section 45(4)

reconstitution of the firm. 4. The Ld. CIT(A) has erred in upholding the addition of Rs. 12,73,57,200/- under section 45(1) of the Act. 5. The Ld. CIT(A) has erred in holding that the retirement of a Partner constitutes "transfer" of capital asset as envisaged ... erred in not appreciating that unless there is a "transfer" within meaning of Section 2(47) of the Act, capital gain under section 45(1) of the Act is not attracted. 7. The Ld. CIT(A) has erred in not appreciating the fact that, none of the Capital assets were

ACIT, Ltu-2, Chennai vs. Ashok Leyland Limited, Chennai

In the result, appeal filed by the assessee is partly allowed and the appeal of the Revenue is dismissed

ITA 2618/CHNY/2019[2015-16]Status: DisposedITAT Chennai07 Jul 2025AY 2015-16

Bench: Shri Aby T. Varkey & Shri Amitabh Shukla

For Appellant: Mr.R. Vijayaraghavan, AdvFor Respondent: Mr.A. Sasikumar, CIT
Section 115JSection 143(3)Section 14A

आयकर अपीलीय अिधकरण, ’डी’ "यायपीठ, चे"ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH: CHENNAI "ी एबी टी. वक", "ाियक

Gokulakrishna, Chennai vs. Deputy Commissioner of Income Tax, Non Corporate Circle 8(1), Chennai

In the result, the appeal filed by the assessee is allowed and the stay

ITA 1088/CHNY/2025[2017-18]Status: DisposedITAT Chennai17 Jun 2025AY 2017-18

Bench: Shri George George Kand Shri Jagadish

For Appellant: yeast Ft az A/For Respondent: arare 41 aréra/
Section 147Section 250

partner and the same is an asset under section 2(47) of the Act and the transfer is liable to capital gains under section 45(1) of the Act and relied on the following case law: 1. Sudhakar M Shetty v. ACIT [2011] 130 ITD 197 (Mumbai) 2. Samir Suryakant ... reconstituted firm. It is the correctness of this finding, which is before us. 7. The assessees are sought to be taxed under Section 45(1) of the Act on the ground that there is a transfer. The word 'transfer' has been defined in Section

Arun Dwivedi, New Delhi vs. ACIT, Circle-9(2), New Delhi

ITA 6293/DEL/2018[2014-15]Status: DisposedITAT Delhi12 Jun 2025AY 2014-15

Bench: Shri Vimal Kumar & Shri Brajesh Kumar Singh

Section 142(1)Section 143(3)Section 54Section 56(2)(vii)

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH, ‘A’: NEW DELHI BEFORE SHRI VIMAL KUMAR, JUDICIAL MEMBER AND SHRI BRAJESH

Hemantkumar Gajanan Lad, Kalamboli vs. The Income Tax Officer, Ward-5, Panvel

In the result, the appeal is allowed for statistical purposes

ITA 2765/PUN/2024[2012-13]Status: PendingITAT Pune04 Jun 2025AY 2012-13

Bench: Shri R. K. Panda & Shri Vinay Bhamoreआयकर अपील सं. / Ita No.2765/Pun/2024 िनधा"रण वष" / Assessment Year : 2012-13 Hemantkumar Gajanan Lad, Vs. Ito, Ward-5, Panvel. 703, Krushidhan Chs, Sector 3, Kalamboli- 410218. Pan : Abjpl6243N Appellant Respondent Assessee By : Shri Ajinkya M. Vaishampayan Revenue By Shri Ramnath P. Murkunde : Date Of Hearing 02.06.2025 : Date Of Pronouncement : 04.06.2025 आदेश / Order Per Vinay Bhamore, Jm: This Appeal Filed By The Assessee Is Directed Against The Order Dated 31.07.2024 Passed By Ld. Cit(A)/Nfac For The Assessment Year 2012-13. 2. There Is Delay In Filing Of The Present Appeal. We Are Satisfied With The Reasons Mentioned In The Affidavit For Condonation That The Applicant Was Prevented By Sufficient Cause For Not Filing The Appeal Within The Prescribed Time Limit. Ld. Dr Has Not Raised Any Objection To Condone The Delay, Therefore We Condone The Delay & Proceed To Adjudicate The Appeal.

For Appellant: Shri Ajinkya M. Vaishampayan
Section 143(3)Section 148Section 45(1)

respect of Plot No.20 & 20A, Sector-22, at Ulwe Node, Tal: Panvel Dist. Raigad vide tripartite agreement dated 12.09.2011. Under the provisions of section 45(1) of the IT Act, the assessee was required to offer capital gains as a result of above transaction. However, it is seen that

Isc Speciality Chemicals LLP, Mumbai vs. ITO Ward 19(1)(5), Mumbai

In the result the appeal filed by the assessee stands partly allowed

ITA 457/MUM/2025[2018-19]Status: DisposedITAT Mumbai28 May 2025AY 2018-19

Bench: Smt. Beena Pillai () & Shri Girish Agrawal ()

Section 45Section 47Section 47A(4)Section 48Section 50BSection 56

under the Limited Liability Partnership Act. 2008, is a transfer under the Income-tax Act, 1961 ('the Act') so as to attract section 45(1) of the Act? b. Whether such conversion entails any consideration to be received by the company? c. If the answers to the above ... considered as "transfer". d. One has to independently look into the ingredients of transfer as defined u/s 2(47) and ingredients of section 45(1). e. As submitted earlier, conversion of company into LLP is not a transfer and therefore, there is no capital gains tax liability u/s 45(1

Bharat Diamond Bourse, Mumbai vs. DCIT (E)- 1(1), Mumbai

In the result, appeal is allowed

ITA 2219/MUM/2024[2009-2010]Status: DisposedITAT Mumbai12 Mar 2025AY 2009-2010

Bench: Shri Saktijit Dey, V.P. & Shri Girish Agrawal, Am

Section 2(15)Section 45(1)Section 6

Customs Area' for the purposes of storage and clearance of diamonds, gems etc. On the same day, another notification was issued under Section 45(1) of the Customs act approving MMTC as the Custodian of the imported cargo of such goods until their clearance in accordance with the provisions

Deputy Commissioner of Income Tax, Circle-1, Thane, Ashar It Park, Thane West vs. Darshan Enterprises, Ghodbunder Road, Thane

In the result, appeal of the Revenue is dismissed

ITA 4969/MUM/2024[2018-19]Status: DisposedITAT Mumbai28 Feb 2025AY 2018-19

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI GIRISH AGRAWAL (Accountant Member)

Section 143(3)Section 68

assessee-partner from other existing partners for reduction in profit sharing ratio would not tantamount to even capital gains chargeable to tax under section 45(1) as also has been upheld by the Hon'ble Mumbai ITAT in the case of Anik Industries Ltd vs. DCIT [2020] 116 taxmann.com

Sanjeev Kumar Kathuria, Yamuna Nagar vs. Income Tax Officer Ward 1, Yamunanagar

In the result, the appeal of the assessee is allowed

ITA 329/CHANDI/2024[2018-19]Status: DisposedITAT Chandigarh27 Feb 2025AY 2018-19

Bench: SHRI. VIKRAM SINGH YADAV (Accountant Member), SHRI. PARESH M. JOSHI (Judicial Member)

For Appellant: Shri Ajay Jain, C.AFor Respondent: Smt. Kusum Bansal, CIT, DR
Section 143(2)Section 143(3)Section 263Section 40A(3)

transfer of a capital asset under a gift or will or an irrevocable trust would not be covered by the provisions of section 45(1) and taking into consideration the transfer of capital asset cannot be computed in terms of section 45. Thus, the present transfer of property

Sahibzada Timber and Ply Private Limited, Mohali vs. DCIT, ACIT Central Circle-2, Chandigarh

In the result, the appeal of the assessee is dismissed

ITA 699/CHANDI/2024[2019-20]Status: DisposedITAT Chandigarh19 Feb 2025AY 2019-20

Bench: SHRI. VIKRAM SINGH YADAV, AM आयकर अपील सं./ ITA No. 699/Chd/2024 निर्धारण वर्ष / Assessment Year : 2019-20 M/s Sahibzada Timber & Ply Private Limited B41-42, Phase-3, Indl. Aera, SAS Nagar Mohali, Punjab बनाम The DCIT Central Circle-2 Chandigarh स्थायी लेखा सं./PAN NO: AAQCS2239G अपीलार्थी/Appellant प्रत्यर्थी/Respondent निर्धारिती की ओर से/Assessee by : Shri Mohit Dhiman, C.A राजस्व की ओर से/ Revenue by : Dr. Ranjeet Kaur, Sr. DR Shri Dharam Vir, Addl. CIT, Sr.DR सुनवाई की तारीख/Date of He

For Appellant: Shri Mohit Dhiman, C.AFor Respondent: Dr. Ranjeet Kaur, Sr. DR
Section 250(6)Section 50C

provisions of section 12B of the 1922 Act pertain to capital gains. Sub-section (1) was in pari materia to section 45(1) of the present Act and sub-section (2) of section 12B of the 1922 Act was in pari materia to the provisions of section

L & T Technologies Services Limited, Mumbai vs. Assistant Commissioner of Income Tax, Circle 2(2)(1), Mumbai

In the result, the additional grounds of the assessee are allowed for statistical purposes

ITA 4255/MUM/2023[2015-16]Status: DisposedITAT Mumbai06 Feb 2025AY 2015-16

Bench: Shri B.R. Baskaran & Shri Anikesh Banerjeel&T Technologies Services Ltd Vs Assistant Commissioner Of Income L&T House, N.M. Marg, Tax, Circle 2(2)(1), Mumbai Room No.545, 5Th Floor, Aayakar Mumbai Pan: Aaccl4310P Bhavan, Maharshi Karve Road, Mumbai-400 020 Appellant Respondent

For Appellant: Shri Nitesh JoshiFor Respondent: Dr. K.R. Subhash (CIT- DR)
Section 10ASection 143(3)Section 170Section 2Section 250Section 37Section 90

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “A”, MUMBAI BEFORE SHRI B.R. BASKARAN, ACCOUNTANT MEMBER AND SHRI ANIKESH BANERJEE

Pradeep Pinjani, Bhopal vs. ITO-1(2), Bhopal

Appeal is allowed as mentioned above

ITA 556/IND/2024[2016-17]Status: DisposedITAT Indore27 Jan 2025AY 2016-17

Bench: Shri B.M. Biyani & Shri Dinesh Mohan Sinha

Section 143(2)Section 143(3)Section 54F

from impugned properties declared by assessee in return of income. 15. Ld. DR for revenue opposed the submission of Ld. AR. He referred section 45(1) of the Act which prescribes that any profit or gain arising from transfer of a capital asset shall be chargeable to tax after giving ... Pinjani ITA No. 556/Ind/2024 - AY 2016-17 claims of costs/exemption. Although Ld. DR for revenue is correct in submitting that in terms of section 45(1)/48, the capital gain has to be worked out after deducting costs/exemption but we are concerned with the issue for examination in limited scrutiny