“Section 45(4)”

ASSISTANT COMMISSIONER OF INCOME TAX, CHENNAI vs. MANIKANDAN, CHENNAI

Bench: Shri Aby T. Varkey & Ms. Padmavathy.Sआयकर अपील सं./Ita No.2986/Chny/2025 निर्धारण वर्ष /Assessment Year: 2017-18 The Asst. Commissioner Of Income Tax, Non Corporate Circle-4(1), Chennai. Manikandan, Vs. No.15/16/17, Vision Towers, 2Nd Floor, Yogam Garden, Valasarvakkam, Chennai - 600 087. Pan: Behpm 6583A (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से / Assessee By प्रत्यर्थी की ओर से /Revenue By Mr. R. Sivaraman, Advocate Ms. R. Anitha, Addl. Cit सुनवाई की तारीख/Date Of Hearing घोषणा की तारीख /Date Of Pronouncement 11.02.2026 16.02.2026 Per Padmavathy.S, A.M: आदेश / Order This Appeal By The Revenue Is Against The Order Of The Commissioner Of Income Tax (Appeals)/National Faceless Appeal Centre (Nfac), Delhi, (In Short "Cit(A)") Passed U/S. 250 Of The Income Tax Act, 1961 (In Short "The Act") Dated 26.08.2025 For Assessment Year (Ay) 2017-18. The Assessee Raised The Following Ground Of Appeal: “1. The Order Of The Ld Cit(A) Is Contrary To Law & Facts & Circumstances Of The Case. 2 The Ld Cit(A) Erred In Deleting The Addition Made By The Ao Of An Amount Of Rs.2,98,29,315/- Credited In Assessee'S Capital Account By M/S Crcl Llp, In Which Assessee Is A Partner, For Sacrificing / Relinquishing - 2 -:

held that there was transfer of capital assets within the meaning of Section 2(47) attracting capital gains tax in terms of Section 45(4) of the Act. 22. In the instant case, the firm is not taxed. It is the individual partners who are taxed. Moreover, in the instant ... sharing ratio, the asset so revalued and credited into capital accounts could be said to be “transfer” which would attract the provisions of section 45(4) of the Act and the said amount would be chargeable to capital gains. For the above proposition, the ld. DR placed reliance

DEPUTY COMMISSIONER OF INCOME TAX, NUNGAMBAKKAM vs. SATHYABAMA RAMACHANDRAN , ALWARTHIRUNAGAR

The appeal of the revenue is dismissed

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

sharing ratio, the asset so revalued and credited into capital accounts could be said to be “transfer” which would attract the provisions of section 45(4) of the Act and the said amount would be chargeable to capital gains. For the above proposition, the ld. DR placed reliance ... partner into partnership firm without there being any transfer of asset of firm in his favour would not attract provisions of section 45(4) of the Act. In the case of Anik Industries Ltd. v. DCIT [2020] 116 taxmann.com 385 (Mumbai), by following the decision in the case

INCOME TAX OFFICER, COIMBATORE vs. DAMAYANTI RAMACHANDRAN, GN MILLS POST, COIMBATORE

Bench: Hon'Ble Shri Manu Kumar Giri & Hon'Ble Shri S. R. Raghunathaआयकर अपील सं./Ita No.103/Chny/2025, निर्धारण वर्ष/Assessment Year: 2015-16 Income Tax Officer, Non-Corporate Ward-4(3) Coimbatore Damayanti Ramachandran, Pb No.5303, Gn Mills Post, Coimbatore, Tamil Nadu-641029 [Pan: Aabhd8298Q] (अपीलार्थी/Appellant) V. (प्रत्यर्थी/Respondent) Co No.19/Chny/2025, निर्धारण वर्ष/Assessment Year: 2015-16 Damayanti Ramachandran, Pb No.5303, Gn Mills Post, Coimbatore, Tamil Nadu-641029 [Pan: Aabhd8298Q] Income Tax Officer, Non-Corporate Ward-4(3) Coimbatore V. (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) आयकर अपील सं./Ita No.149/Chny/2025, निर्धारण वर्ष/Assessment Year: 2016-17 Income Tax Officer, Non-Corporate Ward-4(3) Coimbatore Damayanti Ramachandran, Pb No.5303, Gn Mills Post, Coimbatore, Tamil Nadu-641029 [Pan: Aabhd8298Q] (अपीलार्थी/Appellant) V. (प्रत्यर्थी/Respondent) Co No.20/Chny/2025, निर्धारण वर्ष/Assessment Year: 2016-17 Damayanti Ramachandran, Pb No.5303, Gn Mills Post, Coimbatore, Tamil Nadu-641029 [Pan: Aabhd8298Q] Income Tax Officer, Non-Corporate Ward-4(3) Coimbatore (अपीलार्थी/Appellant) V. (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Appellant By Mr.Ketan K. Ved, C.A

based placing reliance on the provisions of sections 28(iv), 2(47) and 45(4) as "Prior to the amendment of section 45(4) of the Act vide Finance Act, 2021 w.e.f. 01.04.2021, section 45(4) of the Act says that the profits or gains arising from the transfer ... placed a reference of section 2(47) in para 4.1 of the assessment order in one instance, did not discuss the scope of section 45(4) of the Act any where in the assessment order. The addition in the hands of the assessee has been made as income from business

INCOME TAX OFFICER, COIMBATORE vs. DAMAYANTI RAMACHANDRAN, GN MILLS POST, COIMBATORE

In the result, both the appeals of revenue for the A

Bench: Hon’Ble Shri Manu Kumar Giri & Hon’Ble Shri S. R. Raghunathaआयकर अपील सं./Ita No.103/Chny/2025, ननिाारण वर्ा/Assessment Year: 2015-16

based placing reliance on the provisions of sections 28(iv), 2(47) and 45(4) as "Prior to the amendment of section 45(4) of the Act vide Finance Act, 2021 w.e.f. 01.04.2021, section 45(4) of the Act says that the profits or gains arising from the transfer ... placed a reference of section 2(47) in para 4.1 of the assessment order in one instance, did not discuss the scope of section 45(4) of the Act any where in the assessment order. The addition in the hands of the assessee has been made as income from business

ABUSHA INVESTMENT & MANAGEMENT SERVICES LLP,CHENNAI vs. DCIT NON CORPORATE CIRCLE 7(1), CHENNAI

In the result, appeal filed by the assessee is allowed

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

through video conferencing without providing any reasons. 3. The Ld. CIT(A) has erred in law and facts by affirming the applicability of section 45(4) of the Act in the Appellant's case since the said section stipulates that the incidence of tax arises only in the hands ... from an existing firm, and who receives assets from the firm, the law before 1988 would really be of no support, as by Section 45(4) what was otherwise not taxable has been made taxable. Section 45(4) seems to have been introduced with a view to overcome the judgment