https://www.taxtmi.com/caselaws?id=27850 Estate duty payable on inherited property is not deductible in computing capital gains under the Income-tax Act. The computation is confined to the statutory scheme in sections 48, 49 and 55, and such duty is neither the cost of acquisition nor the cost of improvement, nor an expenditure directly deductible under section 48. The liability is a personal obligation of the accountable person, not an encumbrance on the asset, and the first charge under the Estate Duty Act only protects revenue without changing that character. On this basis, the deduction was disallowed and the issue was decided against the assessee. en-us Tue, 12 Jun 1984 00:00:00 +0530 Tue, 16 Feb 2010 13:50:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=27850 Estate duty payable on inherited property is not deductible in computing capital gains under the Income-tax Act. The computation is confined to the statutory scheme in sections 48, 49 and 55, and such duty is neither the cost of acquisition nor the cost of improvement, nor an expenditure directly deductible under section 48. The liability is a personal obligation of the accountable person, not an encumbrance on the asset, and the first charge under the Estate Duty Act only protects revenue without changing that character. On this basis, the deduction was disallowed and the issue was decided against the assessee. Case-Laws Income Tax Tue, 12 Jun 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=27850