diff --git a/[refs] b/[refs]
index 8f4e053557f5..631a54c81f09 100644
--- a/[refs]
+++ b/[refs]
@@ -1,2 +1,2 @@
 ---
-refs/heads/master: aab99c2c26f74d90f615fcca534172dfc1c8bec2
+refs/heads/master: b10b8520903204c9a1e4ef4a6827c2f1569aae9b
diff --git a/trunk/fs/ext4/ialloc.c b/trunk/fs/ext4/ialloc.c
index 57f6eef6ccd6..1a0e183a2f04 100644
--- a/trunk/fs/ext4/ialloc.c
+++ b/trunk/fs/ext4/ialloc.c
@@ -979,16 +979,12 @@ struct inode *ext4_new_inode(handle_t *handle, struct inode *dir, int mode,
 		atomic_dec(&sbi->s_flex_groups[flex_group].free_inodes);
 	}
 
-	inode->i_uid = current_fsuid();
-	if (test_opt(sb, GRPID))
+	if (test_opt(sb, GRPID)) {
+		inode->i_mode = mode;
+		inode->i_uid = current_fsuid();
 		inode->i_gid = dir->i_gid;
-	else if (dir->i_mode & S_ISGID) {
-		inode->i_gid = dir->i_gid;
-		if (S_ISDIR(mode))
-			mode |= S_ISGID;
 	} else
-		inode->i_gid = current_fsgid();
-	inode->i_mode = mode;
+		inode_init_owner(inode, dir, mode);
 
 	inode->i_ino = ino + group * EXT4_INODES_PER_GROUP(sb);
 	/* This is the optimal IO size (for stat), not the fs block size */