Capital gain

Selling property means transfer of Capital Asset and proceed on transfer cab be used for any purpose.
Section 45(1)Provides that any gain on "Transfer" of Capital asset effected in the financial year will be chargeable to tax under the head of Capital gain in the year of transfer.

Therefore, transfer of property in case of Mr. A shall be chargeable to tax irrespective of use of sale prow

# sale proceed.