conversion from lease hold to free hold period to be considered for short term/long term period computation

The concurrent decisions/ judgments of CIT(A), Tribunal and High Court on the issue of period of holding of capital asset deserves to be accepted by revenue.There are many situations in which conversion from one form to another form of assets is not considered as transfer but regarded as continued holding. In some situations period of holdign of origianl asset or period of holdign by origina holder is considered as period of holding of new assets or the assessee as the case may be. The period of holdign is also reckoned from the date of original acquisition. What is more important is the date of acquisition and cost of acquistion and improvement and dates of incurring such costs.Difernet cost inflation index is applied according to the yeear of incurring cost of acquisition and cost of improvement. Thus nature of long-term capital asset or holdign period is not affected due to incurring cot of improvement. This is clearly intended as per various provisions. The CBDT will do well to make rules to clarify more situations in which period of holding of original asset or period of holding of previous owner is included in period of holdign . The situations as specified in Explanation 1 in section 2(42A) are illustrative. AS per clause (ii) to section 2(42A) the Board may by Rules prescribe for determination of period of holdign of assets. This shows that the items covered in Explanationa re illustrative.As per my information The Board has not yet made Rules in this regard. Rules may be framed to include all period from the date of acquisition and making of investment in the capitla asset by the assesse or by previous owner (when his period of holding is included).