Period of holding by donor to be considered to work out indexed cost of acquisition of gifted assets

IT: Where assessee's brother acquired a property prior to 1-4-1981 and he had gifted said property to assessee on 23-5-1995 and subsequently assessee had sold property on 7-2-2006, while computing capital gain indexed cost of acquisition was to be worked out with reference to 1-4-1981 and not with reference to date on which assessee acquired property by gift, i.e., 23-5-1995