Return of income was filed claiming said LTCG as exempt under section 54 of the Act. House was not constructed hence offered  long term capital gain to taxation in assessment year 2016-17. Assessing Officer, disallowed exemption claimed on ground that assessee had not constructed house property within period of 3 years. On appeal the Tribunal held that held that if amount of capital gain was not utilised towards construction of residential house within a period of 3 years from date of transfer of original asset, then, it would be charged to capital gain under section 54 in year in which period of 3 years from date of transfer of original asset expires. Accordingly the Assessing Officer was  directed to grant exemption of said long term capital gain and  chargeable to tax in the assessment year 2016-17. Followed Sri Prasad Nimmagadda v. Dy. CIT [2013] 32 taxmann.com 5/56 SOT 473 (Hyd) (Trib.). (AY. 2013-14)