https://www.taxtmi.com/caselaws?id=277791 Under sections 45, 48, 49(1) and 55 of the Income-tax Act, capital gains are computed by deducting only the cost of acquisition and the cost of improvement. The note explains that estate duty paid on the death of a previous owner, though it creates a statutory charge on inherited immovable property, does not transfer any fresh interest to an assessee who already holds full title. Payment of that duty merely discharges an encumbrance and does not perfect title or amount to any addition or alteration of the capital asset. Accordingly, proportionate estate duty is not deductible as either cost of acquisition or cost of improvement. en-us Tue, 23 Dec 1980 00:00:00 +0530 Mon, 24 Dec 2018 17:14:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=277791 Under sections 45, 48, 49(1) and 55 of the Income-tax Act, capital gains are computed by deducting only the cost of acquisition and the cost of improvement. The note explains that estate duty paid on the death of a previous owner, though it creates a statutory charge on inherited immovable property, does not transfer any fresh interest to an assessee who already holds full title. Payment of that duty merely discharges an encumbrance and does not perfect title or amount to any addition or alteration of the capital asset. Accordingly, proportionate estate duty is not deductible as either cost of acquisition or cost of improvement. Case-Laws Income Tax Tue, 23 Dec 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=277791