(PER S.J. VAZIFDAR, J.) :

1. With the consent of the parties, we proceed to hear the appeal filed under section 260A of the Income Tax Act, 1961 and the cross-objections finally.

2. The appeal is admitted on the following substantial question of law :-

“Whether on the facts and circumstances of the case the ITAT was right in directing the A.O. to calculate the long term capital gain without appreciating that section 2(42A) of the Act explanation 1 only determines the holding period of an asset for the purpose of short term capital gains and has no application to long term capital gain for which the assessee gets the benefit of indexation?”

The cross-objections are admitted on the following substantial question of law :-

“Whether, on the facts and in the circumstances of the case the Tribunal erred in holding that in respect of the 50% of the property inherited by the respondent from his mother the period of holding will start from 21.08.1988 and not from 01.04.1981 ?

3. In or about the year 1942, the respondent’s father acquired the entire immovable property from his father i.e. the respondent’s grand-father. The respondent’s father expired in the year 1988, leaving behind a