The assessee sold a plot of land and invested the Long-Term Capital Gains earned thereon in a residential house. The AO allowed the claim of the assessee u/s. 54F of the Act after making disallowance in respect of indexed cost of acquisition. On appeal, CIT(A) disallowed entire exemption on the ground that the construction timeline was not being met. The CIT(A) also observed that the assessee had not deposited any amount in the capital gains scheme account whereas the amounts were duly deposited in the capital gains scheme account and duly utilized from the said account only. The Tribunal quashed the order of the CIT(A) and held that since the amounts for property purchase and construction were paid within the relevant period from the Capital Gains Account, the disallowance lacked basis. It emphasized that completion of construction or possession within the stipulated time is not crucial.  The appeal was allowed.(AY. 2015-16)