Is Exemption u/s Sec. 54 Allowed Even if New House is purchased from Borrowed Funds?

Section 54 provides relief to a tax payer who gets gains on account of sale of residential house. The provision u/s 54 provides that tax will not be imposed on long term gains on sale of residential house up to the extent gains same is utilised for buying house within two years from the date of transfer of sold assets or constructing the house within three years from the date of transfer of sold assets.
But the question is whether a tax payer has to spend on new residential house the same money which he got out of sale or the tax payer just needs to buy a house within specified period, no matter, from where the money has come.
Recently, Bombay High Court in CIT vs. Dr.P.S.Pasricha has confirmed the decision of Mumbai Tribunal that for claiming benefit u/s 54(1), law does not make it mandatory that the assessee must use the same funds as received from sale. The source of funds is not relevant.