JUDGMENT

S.C. Agrawal, J.-Special leave granted in Special Leave Petition No. 10737 of 1981.

2. These appeals filed by the assessee involve the question whether the estate duty paid by the assessee under the provisions of the Estate Duty Act, 1953, to the extent it relates to the property that is transferred by the appellant, can regarded as cost of acquisition of the said property or cost of improvement to the said property or cost of improvement to the said property for the purpose of computation of capital gains under the Income Tax Act, 1961 (hereinafter referred to as the Act ). Civil Appeals Nos. 6098-6101 of 1983 relate to assessment years 1966-67 to 1970-71, Civil Appeal No. 860 of 1988 relates to assessment year 1972-73 and Civil Appeal arising out of S.L.P. (C) No. 10737 of 1981 relates to assessment year 1971-72.

3. Ramanathan Chettiar, who had considerable movable and immovable properties, died on January 26, 1958 leaving behind his wife, Smt. Umayal Achi and daughter, Smt. S. Valliammai as his legal heirs. On his death the said properties devolved upon the aforesaid heirs in equal shares and a partition was effected between them under which certain properties were