Hi Shashi,
The update objects option doesn't perform the migration per se. It is a step used to remove any inconsistencies between the CMS database and Filestore.
The "Copy" option from the configuration tab in CCM performs the moving of objects.
This cannot be done from 3.1 to 4.0.
Upgrade Management Tool is used for migrations to BI 4.x from XI 3.x and XI R2. It is more interactive and provides detailed logging in case of any issues during upgrade (whether at object level, or overall).
Due to differences in the CMS database table structure, database migrations (or "Copy CMS db" option) would not be possible here
Regards,
Siddhartha