https://www.taxtmi.com/caselaws?id=36487 For capital gains computation under the Income-tax Act, proportionate estate duty paid on inherited property is deductible only if it represents cost of acquisition or cost of improvement. The Madras High Court noted that estate duty under the Estate Duty Act creates a statutory charge on immovable property, but its payment does not create any new interest in the asset, perfect an imperfect title, or add to or alter the property itself. Discharging a liability attached to the property is not the same as incurring expenditure on the capital asset. Accordingly, such estate duty was not deductible as either acquisition cost or improvement cost. en-us Wed, 09 Apr 1980 00:00:00 +0530 Mon, 22 Mar 2010 15:53:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36487 For capital gains computation under the Income-tax Act, proportionate estate duty paid on inherited property is deductible only if it represents cost of acquisition or cost of improvement. The Madras High Court noted that estate duty under the Estate Duty Act creates a statutory charge on immovable property, but its payment does not create any new interest in the asset, perfect an imperfect title, or add to or alter the property itself. Discharging a liability attached to the property is not the same as incurring expenditure on the capital asset. Accordingly, such estate duty was not deductible as either acquisition cost or improvement cost. Case-Laws Income Tax Wed, 09 Apr 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36487