Assessee  was  a member of  Mumbai stock exchange  (BSE) carrying on business of share and stock broking. The assessee’s  claim of capital gain on sale of shares was disallowed by the Assessing Officer. On appeal Commissioner (Appeals) adopted cost inflation index from year of allotment of BSE equity shares to assessee as against cost inflation index for year in which BSE card was originally acquired for purpose of calculating Indexed cost of acquisition for computing long term capital gain on sale of equity shares of BSE Ltd. Tribunal held that  indexation to calculate capital gain is liable to be reckoned with effect from allotment of BSE card and not from date of BSE equity shares issued to appellants. Tribunal further held that  as per clause (ha) inserted in Explanation 1 to section 2(42A) by Finance Act, 2003, period of holding of shares of BSE Ltd. shall be reckoned from date of original membership of BSE and not from date of allotment of shares in BSE Ltd.. Accordingly  for computing capital gain, indexed cost of acquisition of shares of BSE was liable to be considered from date of original membership of BSE and not from date of allotment of shares in BSE Ltd. (AY. 2008-09)