The assessee  claimed  u/s. 54F in respect of capital gains on sale of shares in respect of  apartment buyer’s agreement entered with SEPL for purchase of a new residential apartment as per which the assessee was required to make a payment which was paid by assessee on various dates. The AO held that assessee had not purchased the new flat but had made payment towards instalment to the builder for construction of the property, therefore, as the new asset was constructed then time limit is there, i.e., the date of sale of original asset till the expiry of 3 years thereafter applied. The assessee had started investing in the new asset from 3 years and 11 months before the date of sale. Around 90% of the total investment in the new asset was made before the date of sale of the original asset. The AO held that assessee was not eligible for deduction u/s.54F of the Act.Tribunal held that, assessee had sold shares, entered into an agreement with a builder for purchase of new residential flat which was constructed by builder in phased manner and payment of which was linked to stage of construction, it was a case of purchase and not construction of new asset hence eligible for deduction. (AY. 2011-12)