Assessee’s father purchased a property in 1963.  After death of assessee’s father, a settlement was arrived between assessee and his family members in 2003 wherein assessee became sole owner of property.  Assessee sold property in 2007 and claimed long term capital gain after working out indexed cost of acquisition.  Assessing Officer made additions treating acquisition of house w.e.f 2003 i.e date of memorandum of family settlement, working out indexed cost of acquisition from that date instead of cost earlier as on 1-4-1981.   On appeal, the Commissioner (Appeals) partly allowed the appeal of the assessee. The Tribunal however allowed the appeal of the revenue. On appeal the Court held that  there is no ‘transfer’ involved in a family arrangement. In instant case, there was a settlement arrived at between members of Hindu undivided family (HUF), accordingly, cost with reference to acquisition of property would have to be assessed as per section 49(1)(i). Accordingly  cost inflation index was to be calculated with reference to year 1-4-1981 by treating acquisition of property as purchased by father of assessee on 1-4-1963 through registered deed dated 6-6-1963 and merely because family settlement was arrived in year 2003 would not make any difference.  (AY. 2011-12)