Section 45(3) of the Income Tax Act

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
14
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
9
citing judgments
CIT v. Gurunath Talkies
328 ITR 59 · 2010 · High Court
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 · 2008 · ITAT
4
citing judgments
ITO v. Fine Developers
55 SOT 122 · ITAT
4
citing judgments

Judgments on Section 45(3)

Jagdish Manilal Patel, Surat vs. Deputy Commissioner of Income Tax, Central Circle-4, Surat

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

ITA 80/SRT/2018[F.Y. 2013-14 ]Status: DisposedITAT Surat24 May 2021

Bench: Shri Pawan Singh & Dr. Arjun Lal Saini(Hearing In Virtual Court) Shri Jagdish Manilal Patel, The Dy. Commissioner D-5, Somnath Society, Of Income Tax, Central Vs. Nr. Somnath Mahadev Temple, Circle-4, Surat. Parle Point, Surat -395007. Also At C-5, Somnath Mahadev Society, Near Rargam Shopping Comlex, Umara, Surat, 395007. E-Mail Moneyarcade@Gmail.Com Ph. 9824122144 Pan : Abbpp 1131 H Applicant Respondent

Section 143(3)Section 254(1)Section 271ASection 45(3)

Shri Atit Maheshwari Patel, Ahmedabad vs. The Dy. CIT., Central Circle-1(2), Ahmedabad

In the result the appeal of the assessee is party allowed for the statistical purposes

ITA 1366/AHD/2016[2007-08]Status: DisposedITAT Ahmedabad12 Apr 2021AY 2007-08

Bench: Shri Rajpal Yadav & Shri Waseem Ahmed

Section 131Section 45(3)

Shri Laxmanbhai Prabhudas Patel, Ahmedabad vs. The Dy. CIT., Central Circle-1(2), Ahmedabad

In the result the appeal of the assessee is party allowed for the statistical purposes

ITA 1364/AHD/2016[2011-12]Status: DisposedITAT Ahmedabad12 Apr 2021AY 2011-12

Bench: Shri Rajpal Yadav & Shri Waseem Ahmed

Section 131Section 45(3)

Shri Shantilal Prabhudas Patel, Ahmedabad vs. The Dy. CIT., Central Circle-1(2), Ahmedabad

In the result the appeal of the assessee is party allowed for the statistical purposes

ITA 1363/AHD/2016[2007-08]Status: DisposedITAT Ahmedabad12 Apr 2021AY 2007-08

Bench: Shri Rajpal Yadav & Shri Waseem Ahmed

Section 131Section 45(3)

Smt. Bhavnaben Maheshbhai Patel, Ahmedabad vs. The Dy. CIT., Central Circle-1(2), Ahmedabad

In the result the appeal of the assessee is party allowed for the statistical purposes

ITA 1371/AHD/2016[2008-09]Status: DisposedITAT Ahmedabad12 Apr 2021AY 2008-09

Bench: Shri Rajpal Yadav & Shri Waseem Ahmed

Section 131Section 45(3)

Smt. Bhavnaben Maheshbhai Patel, Ahmedabad vs. The Dy. CIT., Central Circle-1(2), Ahmedabad

In the result the appeal of the assessee is party allowed for the statistical purposes

ITA 1370/AHD/2016[2007-08]Status: DisposedITAT Ahmedabad12 Apr 2021AY 2007-08

Bench: Shri Rajpal Yadav & Shri Waseem Ahmed

Section 131Section 45(3)

Shri Maheshbhai S Patel, Ahmedabad vs. The Dy. CIT., Central Circle-1(2), Ahmedabad

In the result the appeal of the assessee is party allowed for the statistical purposes

ITA 1368/AHD/2016[2007-08]Status: DisposedITAT Ahmedabad12 Apr 2021AY 2007-08

Bench: Shri Rajpal Yadav & Shri Waseem Ahmed

Section 131Section 45(3)

Shri Mohanlal Laljibhai Ghodasara(HUF), Junagadh vs. The Income Tax Officer, Ward-1(2), Junagadh

In the result, the appeal of assessee is allowed

ITA 44/RJT/2016[2011-12]Status: DisposedITAT Rajkot23 Mar 2021AY 2011-12

Bench: Shri Pradip Kumar Kedia & Smt. Madhumita Royआयकर अपील सं./I.T.A. No. 44/Rjt/2016 ("नधा"रण वष" / Assessment Year : 2011-12)

For Respondent: Shri S. S. Rathi, Sr.D.R

Commissioner of Income Tax vs. Shri. Vikram Reddy

In the result, the fifth substantial question of

ITA/291/2013HC Karnataka24 Feb 2021

Bench: ALOK ARADHE,R. NATARAJ

Section 260Section 260A

Income Tax Officer, Ward-4(5), Hyderabad vs. Shrilekha Business Consultancy Pvt Ltd(Formerly Known As Shrilekha Financial Services Initially and Subsequebtly M/S Shrilekha Business Consultancy ), Hyderabad

In the result, both the appeals of the revenue are dismissed

ITA 1041/HYD/2019[2014-15]Status: DisposedITAT Hyderabad04 Nov 2020AY 2014-15

Bench: Shri C.N.Prasad, Jm & Shri M.Balaganesh, Am & Income Tax Officer, Vs. M/S. Shrilekha Business Consultancy Ward – 4(5) Pvt. Ltd., (Pan No.Aaycs0021L) Hyderabad (Formerly M/S. Shrilekha Financial Services Initially & Subsequently M/S. Shrilekha Business Consultancy, Both Are With Pan:Aacfs9088A 3-6-478, Iv Floor, Anand Estate, Liberty Road, Himayath Nagar Hyderabad Pan/Gir No. Aacfs9088A (Appellant) .. (Respondent)

Section 143(3)Section 45(3)Section 56

Income Tax Officer, Ward-4(5), Hyderabad vs. Shrilekha Financial Services (Presently Known As M/S Shrilekha Business Consultancy), Hyderabad

In the result, both the appeals of the revenue are dismissed

ITA 1371/HYD/2018[2015-16]Status: DisposedITAT Hyderabad04 Nov 2020AY 2015-16

Bench: Shri C.N.Prasad, Jm & Shri M.Balaganesh, Am & Income Tax Officer, Vs. M/S. Shrilekha Business Consultancy Ward – 4(5) Pvt. Ltd., (Pan No.Aaycs0021L) Hyderabad (Formerly M/S. Shrilekha Financial Services Initially & Subsequently M/S. Shrilekha Business Consultancy, Both Are With Pan:Aacfs9088A 3-6-478, Iv Floor, Anand Estate, Liberty Road, Himayath Nagar Hyderabad Pan/Gir No. Aacfs9088A (Appellant) .. (Respondent)

Section 143(3)Section 45(3)Section 56

Shri Chandrasinh Ramsinh Parmar, U T of D & Nh vs. The Income Tax Officer, Silvassa Ward, Silvassa

In the result, the appeals filed by the assessees (in ITA No

ITA 1709/AHD/2017[2013-14]Status: DisposedITAT Surat03 Nov 2020AY 2013-14

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकरअपीलसं./Ita No.1235 & 1709/Ahd/2017 ("नधा"रणवष" / Assessment Year: (2013-14) (Virtual Court Hearing) Krishnakumar Ramsinh Parmar, The Income Tax Officer, Silvassa C-Twin Bunngalow 4, Manorath Ward-Silvassa. Vs. Residency, Gurudev Complex, Silvasa-396230. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Acfpp2308B (Assessee) (Respondent) Chandrasinh Ramsinh Parmar, The Income Tax Officer, Silvassa Vs. Parmarwadi, Sayli Road, Silvassa, Ward-Silvassa. Dadra & Nagar Haveli-3962310. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aiypp9167F (Assessee) (Respondent) Assessee By : Shri Hiren R Vepari - Ca Respondent By : Ms Anupama Singla – Sr. Dr सुनवाईक"तार"ख/ Date Of Hearing : 19/10/2020 घोषणाक"तार"ख/Date Of Pronouncement : 03/11/2020 आदेश / O R D E R Per Dr. A. L. Saini:

For Appellant: Shri Hiren R Vepari - CAFor Respondent: Ms Anupama Singla – Sr. DR
Section 143(3)Section 45(3)

Shri Krishnakumar Ramsinh Parmar, Silvassa vs. The Income Tax Officer, Vapi

In the result, the appeals filed by the assessees (in ITA No

ITA 1235/AHD/2017[2013-14]Status: DisposedITAT Surat03 Nov 2020AY 2013-14

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकरअपीलसं./Ita No.1235 & 1709/Ahd/2017 ("नधा"रणवष" / Assessment Year: (2013-14) (Virtual Court Hearing) Krishnakumar Ramsinh Parmar, The Income Tax Officer, Silvassa C-Twin Bunngalow 4, Manorath Ward-Silvassa. Vs. Residency, Gurudev Complex, Silvasa-396230. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Acfpp2308B (Assessee) (Respondent) Chandrasinh Ramsinh Parmar, The Income Tax Officer, Silvassa Vs. Parmarwadi, Sayli Road, Silvassa, Ward-Silvassa. Dadra & Nagar Haveli-3962310. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aiypp9167F (Assessee) (Respondent) Assessee By : Shri Hiren R Vepari - Ca Respondent By : Ms Anupama Singla – Sr. Dr सुनवाईक"तार"ख/ Date Of Hearing : 19/10/2020 घोषणाक"तार"ख/Date Of Pronouncement : 03/11/2020 आदेश / O R D E R Per Dr. A. L. Saini:

For Appellant: Shri Hiren R Vepari - CAFor Respondent: Ms Anupama Singla – Sr. DR
Section 143(3)Section 45(3)

M/S Hotel Woodside, Mangalore vs. Asst.C.I.T., Bangalore

In the result, appeal filed by assessee in ITA No

ITA 1269/BANG/2016[2006-07]Status: DisposedITAT Bangalore14 Aug 2020AY 2006-07

Bench: Shri. A.K Garodia & Smt. Beena Pillai

For Appellant: Shri V Srinivasan, AdvocateFor Respondent: Shri Dilip, Standing Counsel for Dept
Section 143Section 148Section 2Section 53A

Network Construction Company, Mumbai vs. ACIT Cir 2, Mumbai

ITA 2279/MUM/2017[2012-13]Status: DisposedITAT Mumbai11 Aug 2020AY 2012-13

Bench: Sri Mahavir Singh, Vp & Sri Manoj Kumar Aggarwal, Am आयकरअपील िं./ Ita No. 2279/Mum/2017 (ननर्ाारणवर्ा / Assessment Years 2012-13) M/S. Network Construction Acit, Circle – 2, Thane Company, 109-111, Goyal Shopping Centre, Opp. Railway बनाम/ Station, Borivali (W), Vs. Mumbai 400 092 (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) स्र्थायीलेखा िं./Pan No. Aagpn1497A अपीलार्थीकीओर े/Appellant By : Shri Dr. K. Shivram, Ar प्रत्यर्थीकीओर े/Respondent By : Ms. Kavita P. Kaushik, Dr ुनवाईकीतारीख/ Date Of Hearing: 28.07.2020 घोर्णाकीतारीख/ Date Of Pronouncement: 11.08.2020

For Appellant: Shri Dr. K. Shivram, ARFor Respondent: Ms. Kavita P. Kaushik, DR
Section 143(3)Section 45Section 45(3)Section 50C

ACIT - 9(1)(1), Mumbai vs. Amartara Pvt. Ltd., Mumbai

In the result, these appeals by the Revenue stands dismissed

ITA 6181/MUM/2018[2014-15]Status: DisposedITAT Mumbai02 Mar 2020AY 2014-15

Bench: Shri Shamim Yahya, Am & Shri C. N. Prasad, Jm

For Appellant: Shri Michael JeraldFor Respondent: None
Section 45(3)Section 48Section 50C

Commissioner of Income Tax vs. Shri D M Purnesh

ITA/346/2010HC Karnataka17 Feb 2020

Bench: ALOK ARADHE,RAVI V HOSMANI

Section 2(14)Section 260Section 64(1)(IV)

The ITO, Ward-1 (1) (4), Rajkot-Gujarat vs. Shri Mahendrabhai D. Zalavadia, Rajkot-Gujarat

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

ITA 610/RJT/2015[2007-08]Status: DisposedITAT Rajkot29 Nov 2019AY 2007-08

Bench: Shri Waseem Ahmed & Ms. Madhumita Royआयकर अपील सं./Ita No.610/Rjt/2015 "नधा"रण वष"/Asstt. Year: 2007-2008 I.T.O., Shri Mahendrabhai D. Zalavadia, Vs. Ward-1(1)(4), 303, Ayodhya Apartment, Rajkot. University Road, Rajkot. Pan: Aabpz6007F

For Appellant: Shri D.M. Rindani, Sr.DR
Section 45(2)Section 45(3)Section 48Section 80I

ACIT 16(1), Mumbai vs. Prem Sagar, Mumbai

Appeal of the revenue is dismissed

ITA 7442/MUM/2016[2012-13]Status: DisposedITAT Mumbai16 Oct 2019AY 2012-13

Bench: Shri Pramod Kumar & Shri Ravish Soodacit- 16(1), Room No.439, Shri. Prem Sagar, Sagar Villa, N.S Road No. Aayakar Bhavan, M.K.Marg, 12A, Jvpd Scheme, Vile Parle (W), Vs. Mumbai 400 049. Mumbai – 400 049. Pan – Aapps2469E (Appellant) (Respondent)

For Appellant: Shri. KumarPadmapani Bohra, D.RFor Respondent: Shri. K. Gopal &Ms. Neha Paranjpe, A.R‟s
Section 143(1)Section 143(2)Section 143(3)Section 2(22)(e)Section 45Section 45(3)Section 48Section 50Section 50C

Sushilkumar Kasturchand Bafna, Jalgaon vs. Deputy Commissioner of Income-Tax

In the result, the appeal of the assessee in ITA No

ITA 2303/PUN/2014[2009-10]Status: DisposedITAT Pune05 Sept 2019AY 2009-10
For Appellant: Shri Sunil GanooFor Respondent: Shri N. Ashok Babu
Section 147Section 148Section 2(47)Section 45(3)Section 50Section 50C