1998 (10) TMI 16

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....HA BABU J.---The Revenue contends that the urban land tax and corporation tax paid by the owner of the urban land cannot properly be regarded as part of the cost of the acquisition of the land for the purpose of determining the capital gains arising to the owner at the time of transfer of the land. Section 48 of the Act which deals with the mode of computation rules that the capital gains shall be....

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.... sold by it-from the date on which land was purchased by the assessee till the time of the sale to several persons, should be deducted under section 48 of the Act. The Supreme Court in the case of RM. Arunachalam v. CIT [1997] 227 ITR 222 while considering the cost of acquisition of a capital asset on the sale of which capital gains liable to tax arises, has held that estate duty paid by the as....