Assessee sold a jointly held flat wherein her share of capital gain amounted to Rs. 55,82,426/-. Assessee made investment of Rs.98,90,358/- in purchase of new flat and accordingly claimed exemption u/s 54 of the Act. AO reduced exemption u/s 54 to Rs.48,90,358/- on the ground that investment in new house included housing loan of Rs.50,00,000/- availed from CITI Bank. CIT (A) upheld the order of Ld. AO. Aggrieved by the same, Assessee filed an appeal before ITAT. The Tribunal observed that the housing loan was disbursed much after the purchase of new house it was evident from the loan sanction letter of CITI bank as well as bank statement. Thus housing loan was not utilized for the purchase of new house. The Tribunal further held that if the assessee purchases new house with in the stipulated time period mentioned in section 54 of the Act, assessee is entitled to claim deduction u/s 54 of the Act irrespective of whether or not money invested in the purchase of new house property is out of sale consideration received from the transfer of original asset.  The Tribunal allowed assessee’s appeal. (ITA No. 607/Mum/2018, order dt. 05.10.2018, AY 2011-12)