Which cases are most cited on Section 45(3)?

Sudhakar M. Shetty v. ACIT (130 ITD 197) — 14 citing judgments; PCIT v. A. Lalichan (104 Taxmann.com 30) — 9 citing judgments; CIT v. Gurunath Talkies (328 ITR 59) — 8 citing judgments; 1964) 53 ITR 261 SC 2. Rajendra Babubhai Modi (1993) 200 ITR 98 (Guj HC) 3. CIT v. P.N. Panjawani (110 ITD 410) — 4 citing judgments; ITO v. Fine Developers (55 SOT 122) — 4 citing judgments.

How many judgments are there on Section 45(3)?

BharatTax indexes 91 ITAT, High Court and Supreme Court judgments that turn on Section 45(3) of the Income Tax Act, 1961.

Section 45(3) of the Income Tax Act

Q: What is the leading case on Section 45(3) of the Income Tax Act?

Sudhakar M. Shetty v. ACIT (130 ITD 197) is the decision most relied on for Section 45(3), cited in 14 judgments. The taxability of an amount received by a partner upon retirement from a firm depends on the specific mode of retirement and how the accounts are settled, with admission of new partners generally not constituting a taxable transfer.

Income-tax Act, 2025: s.67

Section 45(3) falls under section 45 of the Income-tax Act, 1961, which corresponds to section 67 (Capital gains) of the Income-tax Act, 2025.

Read section 67 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 45(3) is Sudhakar M. Shetty v. ACIT (130 ITD 197), cited in 14 of the 91 judgments on BharatTax that turn on this section.

Leading authorities on Section 45(3)

Sudhakar M. Shetty v. ACIT

130 ITD 197 · 2011 · ITAT

citing judgments

The taxability of an amount received by a partner upon retirement from a firm depends on the specific mode of retirement and how the accounts are settled, with admission of new partners generally not constituting a taxable transfer.

PCIT v. A. Lalichan

104 Taxmann.com 30 · 2019 · High Court

citing judgments

CIT v. Gurunath Talkies

328 ITR 59 · 2010 · High Court

citing judgments

1964) 53 ITR 261 SC 2. Rajendra Babubhai Modi (1993) 200 ITR 98 (Guj HC) 3. CIT v. P.N. Panjawani

110 ITD 410 · 2008 · ITAT

citing judgments

ITO v. Fine Developers

55 SOT 122 · ITAT

citing judgments

Judgments on Section 45(3)

Assistant Commissioner of Income Tax, Chennai vs. Manikandan, Chennai

ITA 2986/CHNY/2025[2017-18]Status: DisposedITAT Chennai16 Feb 2026AY 2017-18

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 -:

Section 147Section 2Section 2(14)Section 2(47)Section 250Section 45Section 45(3)

Radhika Jewellers, Rajkot vs. Dy.CIT 2 (1), Rajkot

In the result, appeal filed by the assessee is allowed

ITA 568/RJT/2025[2015-16]Status: DisposedITAT Rajkot20 Jan 2026AY 2015-16

Bench: Dr. Arjun Lal Saini & Shri Dinesh Mohan Sinha

For Appellant: Shri Samir Jani, Ld. ARFor Respondent: Shri Sanjay Punglia, Ld. CIT(DR)

Section 142(1)Section 143(2)Section 143(3)Section 250Section 45Section 45(3)

Gurugnanasambandar Mission, Mayiladuthurai vs. ITO, Exemption Ward, Trichy

In the result, appeal filed by the assessee is allowed for statistical purposes

ITA 1674/CHNY/2025[2018-19]Status: DisposedITAT Chennai02 Sept 2025AY 2018-19

Bench: Shri S.S. Viswanethra Ravi & Shri S.R. Raghunathaआयकर अपील सं./Ita No.: 1674/Chny/2025 धनिाारण वर्ा / Assessment Year: 2018-19 Gurugnanasambandar Mission Income Tax Officer, Dharmapuram Adhinam, Vs. Exemptions Ward. Dharmapuram, Trichy. Mayiladuthurai – 609 001. Tamil Nadu. [Pan: Aactg-1020-A] (अपीलाथी/Appellant) (प्रत्यथी/Respondent) अपीलाथी की ओर से/Appellant By : Ms. R. Sumedha, Advocate For Ms. G. Vardini Karthik, Advocate. प्रत्यथी की ओर से/Respondent By : Mr. N. Rajakumar, Addl. Cit.

For Appellant: Ms. R. Sumedha, Advocate for Ms. G. Vardini Karthik, AdvocateFor Respondent: Mr. N. Rajakumar, Addl. CIT

Section 12ASection 144Section 147Section 148Section 45(3)Section 68Section 69A

Income Tax Officer, International Taxation Ward-1(1), Chennai vs. Rajamanickam Gautaman, Chennai

In the result, the appeal filed by the Revenue is dismissed

ITA 2753/CHNY/2024[2013-14]Status: DisposedITAT Chennai19 May 2025AY 2013-14

Bench: Shri George George K & Shri Jagadishआयकर अपील सं./Ita No.: 2753/Chny/2024 िनधा"रण वष"/Assessment Year: 2013-14 The Income Tax Officer, Shri Rajamanickam Gautam, International Taxation Ward-1(1), Vs. No.65, Old No.46, Chennai. Defence Colony, Nandambakkam, Chennai – 600 032. Pan: Apgpg 6055G (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant By : Ms. Anitha, Addl. Cit ""यथ" क" ओर से/Respondent By : Shri N.V. Krishnan, Advocate सुनवाई क" तारीख/Date Of Hearing : 07.05.2025 घोषणा क" तारीख/Date Of Pronouncement : 19.05.2025

For Appellant: Ms. Anitha, Addl. CITFor Respondent: Shri N.V. Krishnan, Advocate

Section 147Section 148Section 250Section 45(3)

Dy.Commissioner of Income Tax, Circle-2(1)(1), Ghaziabad vs. Rakesh Sharma, Ghaziabad

Appeal is dismissed

ITA 3030/DEL/2024[2017-18]Status: DisposedITAT Delhi21 Mar 2025AY 2017-18

Bench: Shri Vikas Awasthy & Dr. Mitha Lal Meenaassessment Year: 2017-18 Deputy Commissioner Of Vs. Rakesh Sharma, Income Tax, Circle-2(1)(1), H. No. 261, Sector-1, Chiranjiv Ghaziabad. Vihar, Ghaziabad (Up) Pin: 201 001 [Pan No. Abjps6501Q] (Appellant) (Respondent)

Section 45(3)

Mustafa Katthawala, Kota vs. DCIT ACIT, Circle-2, Kota

In the result, the appeal of the assessee is allowed for

ITA 1156/JPR/2024[2015-16]Status: DisposedITAT Jaipur20 Jan 2025AY 2015-16

Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI, AM\nआयकर अपील सं./ITA. No. 1156/JPR/2024\nनिर्धारण वर्ष / Assessment Years : 2015-16\nMustafa Katthawala\nProp. Shakti Steels, Near Reliance\nPetrol Pump Jhalawar Road, IPIA\nKota.-324005.\nबनाम | The DCIT/ACIT,\nVs.\nCircle-2,\nKota.\nस्थायी लेखा सं./ जीआईआर सं./PAN/GIR No.: AGPPK5043C\nअपीलार्थी / Appellant\nप्रत्यर्थी / Respondent\nनिर्धारिती की ओर से / Assessee by :Shri Devang Gargieya, Adv.\nराजस्व की ओर से / Reven

For Appellant: Shri Devang Gargieya, AdvFor Respondent: Shri Anup Singh, Addl. CIT

Section 144Section 147Section 148Section 148ASection 234BSection 234CSection 234DSection 244ASection 45(3)

Slv Royal Estate, Nellore vs. ITO., Ward-1, Nellore

In the result, the appeal of the assessee is allowed

ITA 403/HYD/2024[2018-19]Status: DisposedITAT Hyderabad21 Oct 2024AY 2018-19

Bench: Shri K. Narasimha Chary & Shri Madhusudan Sawdia

For Appellant: Shri GVN Hari, AdvocateFor Respondent: : Shri P. Dhivahar, CIT-DR

Section 143(2)Section 143(3)Section 263Section 45(3)

Divyanidhi Buildcon Private Limited, Jaipur vs. DCIT Circle 6, Jaipur

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

ITA 616/JPR/2023[2017-18]Status: DisposedITAT Jaipur03 Jun 2024AY 2017-18

Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Shri V.K. Jain (C.A.)For Respondent: Smt. A.S. Nehra (Addl.CIT)

Section 142(1)Section 143(2)Section 143(3)Section 45(3)

Income Tax Officer-10(2)(3), Aayakar Bhavan, Churchgate vs. Abdul Rahim Suleman Ghaswala, Jogeshwari

In the result, the appeals are dismissed

ITA 642/MUM/2024[2013-14]Status: DisposedITAT Mumbai29 May 2024AY 2013-14

Bench: Shri Narendra Kumar Billaiya, Hon'Ble & Shri Sandeep Singh Karhail, Hon'Bleincome Tax Officer-10(2)(3) V. Abdul Rahim Suleman Ghaswala 142/48, Ghaswala Estate Room No-212, Aayakar Bhavan S.V. Road, Jogeshwari(W) M.K. Road, Mumbai-400020 Mumbai – 400102 Pan: Aalpg9087A (Appellant) (Respondent) Assessee Represented By Shri S.M. Makhija & : Ms. Manisha Ghind Department Represented By : Shri Ajay Chandra

Section 148Section 45Section 45(3)Section 48

DCIT, New Delhi vs. M/S. J.K. Technosoft Ltd., New Delhi

In the result, the Appeal of the Revenue in ITA No

ITA 6160/DEL/2016[2009-10]Status: DisposedITAT Delhi30 Apr 2024AY 2009-10

Bench: Sh. Pradip Kumar Kedia & Sh. Yogesh Kumar U.S.Dcit Vs. J. K. Techno Soft Ltd. Circle 13(2) A-2, Shopping Complex, C. R. Building Masjid Moth, Greater New Delhi Kailsah Part-Ii New Delhi Pan: Aaacj0381L Appellant Respondent Assessee By Shri Neeraj Jain, Adv & Sh. Himanshu Goel, Ca Revenue By Shri Rajesh Mahajan, Sr. Dr Date Of Hearing 18/04/2024 Date Of Pronouncement 30/04/2024 Order

Section 115J

Chaudhary Stone Crusher, New Delhi vs. ITO Ward 3(1), Saharanpur

In the result of the assessee is allowed

ITA 2314/DEL/2023[2011-12]Status: DisposedITAT Delhi24 Apr 2024AY 2011-12

Bench: Shri Amit Shukla & Shri M. Balaganeshchaudhary Stone Crusher, Vs. Ito, C/O. Sh. C. S. Anand, Ward-3(1), Advocate, 104, Pankaj Saharanpur, Tower, 10, L. S. C. Savita Vihar, Delhi-92 (Appellant) (Respondent) Pan: Aagfc5621D Assessee By : Shri C. S. Anand, Adv Revenue By : Shri Vivek Kumar Upadhyay, Sr. Dr Date Of Hearing 14/02/2024 Date Of Pronouncement 24/04/2024

For Appellant: Shri C. S. Anand, AdvFor Respondent: Shri Vivek Kumar Upadhyay, Sr. DR

Section 144Section 147Section 148Section 50C

Vijayalakshmi Enterprises, Hyderabad vs. ITO Ward 15(1), Hyderabad

In the result, this appeal of the assessee is allowed

ITA 245/HYD/2021[2016-17]Status: DisposedITAT Hyderabad12 Apr 2024AY 2016-17

Bench: Shri R.K. Panda, Vice- & Shri K. Narasimha Charyआ.अपी.सं /Ita Nos.244 & 245/Hyd/2021 (िनधा"रण वष"/Assessment Years: 2015-16 & 2016-17) Vijayalakshmi Enterprises Vs. Income Tax Officer Hyderabad Ward 15(1) Pan:Aanfv2591E Hyderabad (Appellant) (Respondent) िनधा""रती "ारा/Assessee By: Shri K.A. Sai Prasad, Ca राज" व "ारा/Revenue By:: Smt. Th Vijaya Lakshmi Cit (Dr) सुनवाई की तारीख/Date Of Hearing: 03/04/2024 घोषणा की तारीख/Pronouncement: 12/04/2024 आदेश/Order

For Appellant: Shri K.A. Sai Prasad, CAFor Respondent: : Smt. TH Vijaya Lakshmi CIT

Section 143(3)Section 263

Vijayalakshmi Enterprises, Hyderabad vs. ITO Ward 15(1), Hyderabad

In the result, this appeal of the assessee is allowed

ITA 244/HYD/2021[2015-16]Status: DisposedITAT Hyderabad12 Apr 2024AY 2015-16

For Appellant: Shri K.A. Sai Prasad, CAFor Respondent: : Smt. TH Vijaya Lakshmi CIT

Section 143(3)Section 263

ITO, International Taxation Ward1(2), Chennai vs. Rajamanickam Arulselvan, Chennai

In the result, the appeal filed by the Revenue and the Cross

ITA 479/CHNY/2023[2013-14]Status: DisposedITAT Chennai01 Apr 2024AY 2013-14

Bench: Shri Manjunatha. G & Shri Manomohan Dasआयकर अपील सं./I.T.A. No.479/Chny/2023 िनधा"रण वष"/Assessment Year: 2013-14 & C.O. No. 44/Chny/2023 [In I.T.A. No. 479/Chny/2023] The Income Tax Officer, Vs. Shri Rajamanickam Arulselvan, 65, Defence Officer Colony, 2Nd International Taxation Ward 1(2), Bsnl Building Tower-1, 4Th Floor, Avenue, 6Th Cross Street, Guindy, Greams Road, Thousand Light, Guindy Industrial Estate S.O., Chennai 600 006. Chennai 600 032. [Pan:Aappa2346C] (अपीलाथ"/Appellant) (""थ"/Respondent/Cross Objector) Department By : Shri P. Sajit Kumar, Jcit Assessee By : Shri N.V. Balaji, Advocate सुनवाई की तारीख/ Date Of Hearing : 03.01.2024 घोषणा की तारीख /Date Of Pronouncement : 01.04.2024 आदेश /O R D E R Per Manjunatha, G.: This Appeal Filed By The Revenue Is Directed Against The Order Of The Ld. Commissioner Of Income Tax (Appeals)-16, Chennai, Dated 22.02.2023 Passed In Ita No. 10039/Cit(A)-16/2012-2013 Relevant To The Assessment Year 2013-14. The Revenue Has Raised Following Grounds: 1. That The Order Of The Ld. Cit(A) Is Erroneous On The Facts, The Merits Of The Case & Provisions Of Law As Well & Hence Unsustainable. 2. That The Ld. Cit(A) Erred In Failing To Appreciate That When The Assessee Had Applied For Conversion Of The Vacant Land Into A Plotted

For Appellant: Shri N.V. Balaji, AdvocateFor Respondent: Shri P. Sajit Kumar, JCIT

Section 139Section 143(1)Section 147Section 148Section 2(14)Section 45(3)

DCIT-41(4)(1), Mumbai vs. Abdulsattar Suleman Ghaswala, Mumbai

In the result appeal of learned Assessing officer for A

ITA 1658/MUM/2023[2013-14]Status: DisposedITAT Mumbai21 Dec 2023AY 2013-14

Bench: Shri Prashant Maharishi, Am & Shri Sandeep Singh Karhail, Jm Abdulsattar Suleman Dcit-41(4)(1) Ghaswala Room No. 425, 4Th Floor, Kautilya 142/48 Ghaswala Estate Bhavan, Bkc, Bandra(East) Vs. S V Road Jogeshwari(W) Mumbai-400051 Mumbai-400102 (Appellant) (Respondent) Pan No. Aalpg9088R Co No. 83/Mum/2023 (Arising In Ita No. 1658/Mum/2023 For A.Y. 2013-14) Abdulsattar Suleman Ghaswala Dcit-41(4)(1) Room No. 425, 4Th Floor, Kautilya 142/48 Ghaswala Estate S V Road Jogeshwari(W) Bhavan, Bkc, Bandra(East) Vs. Mumbai-400051 Mumbai-400102 (Cross Objector/ Appellant) (Respondent) Pan No. Aalpg9088R

For Appellant: Shri. K. ShivramFor Respondent: Shri. Ajay Chandran, DR

Section 143(3)Section 148