Assessee booked a new residential flat in an under construction building for which majority of payment were made to builder by availing mortgage/housing loan. Thereafter on 21-5-2014, assessee sold its exisiting residential property and claimed sale proceeds as deduction under section 54 of the Act.  Assessing Officer held  that date of registration of agreement of sale i.e. 15-2-2012, was to be considered as date of purchase and  disallowed deduction on ground that new residential house was not purchased within specified period of one year before or two years after sale of existing residential property and assessee did not use sale consideration to purchase new property. On appeal the Tribunal held that  the  assessee paid majority of consideration for purchase of property and took possession of it on 2-4-2016. Requirement of section 54 is that assessee should purchase a residential house within specified period and source of funds is quite irrelevant. On the facts  date of possession of new residential house was to be considered as date of purchase, and since, date of possession fell within period of 2 years from sale of existing residential house, assessee would be entitled to claim deduction under section 54 even if same was not purchased from sale proceeds of existing property. (AY. 2015-16)