Cost of acquisition in case of inheritance and indexation

MR A PURCHASED/BUILD THE HOUSE IN 1975 FOR 4.00 LACS

MUTUATION WAS EFFECTED IN FY 2010-11 AND THE SAID PROP WAS SOLD IN SAME FINANCIAL YEAR BY 3(CHILDREN)INHARITANTS

WHETHER VALUE AS ON 01.04.1981 AS PER VALUATION REPORT  ie RS 9.38 LACS CAN BE TAKEN FOR CALCULATION OF LONG TERM  CAPITAL GAIN OR VALUE ON THE DATE OF INHERITANCE SHOULD BE TAKEN FOR CALCULATING CAPITAL GAIN.

WHETHER INDEXATION SHOULD BE APPLIED ie COST AS ON 01.04.1981 =9.38X711/100=66.69 LACS