Assessee sold a residential flat and earned long-term capital gain. Assessee deposited entire amount under Capital Gain Account Scheme and claimed deduction under section 54.Assessee,  booked an under-construction residential flat. Assessing Officer denied claim under section 54 on ground that on expiry of three years from date of sale of original asset, said residential flat was not constructed by builder and money invested was lying idle. On appeal the CIT(A)  affirmed the order of the AO. On appeal  the Tribunal held that  purchase of an under-construction flat by assessee would tantamount to investing money in construction of a residential house for purpose of section 54. On facts since assessee had only utilised half amount out of LTCG in new residential house, balance amount of long-term capital gain should be charged to tax under section 45 in year under consideration, being year in which period of three years from date of transfer of original asset expired.  Circular No 471, dated 15-10-1986, Circular No. 672, dated 16-12-1993. (AY. 2016-17)