conversation of agriculture land into commercial property

it depends whether it is urban or rural agricultural land
and whether it is your business to make and sale commercial property.

It's rural agriculture land. And it's not our business

As you know rural agricultural land if not an 'Capital asset' but when you sale property the capital gain will arise and to determine whether that going to be short term or long term, in my point of view :-
a) As you convert agricultural land for any other purpose it become 'Capital asset' and Cost of acquisition (COA) shall be the purchase price of the land.
b) but period of holding shall be determined from the date of conversion as till that date it was not an capital asset.
c) therefore if you sale that after 3 years from conversion it will be long term capital gain otherwise short term capital gain will arise.

Agree n thanks.

But what will be the cost of acquisition. Because it's received from father free of cost. Means it is received as succession.

The case of Manjula j. Shah (Bom) (2013) will apply and cost of acquisition (COA) shall be COA to your father if that not available then COA to person before them.

Sorry i didn't saw succession i quoted case in case as if you received it as a gift from your father. but in the both cases the answer will remain same.

Cost of conversion and cost of construction of shop will also be included in COST OF ACQUISITION.

COA of land and Cost of construction together become COA of building, there is no such cost as cost of conversion in this case

Thanks joshi ji

My pleasure Mr. Chatan