https://www.taxtmi.com/caselaws?id=38094 A court auction purchaser acquires no indefeasible or transferable interest until the sale becomes absolute on confirmation, and a subsequent appellate setting aside of the sale removes the confirmation order's legal effect. Where the sale is ultimately set aside, the purchaser is treated as never having acquired an interest capable of transfer or relinquishment. Accordingly, an amount received under a compromise connected with setting aside the auction sale is not consideration for transfer of a capital asset and is not taxable as long-term capital gain. A substance-over-form approach cannot disregard the legal consequences of the court proceedings. en-us Fri, 14 Apr 1978 00:00:00 +0530 Sat, 03 Apr 2010 11:46:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38094 A court auction purchaser acquires no indefeasible or transferable interest until the sale becomes absolute on confirmation, and a subsequent appellate setting aside of the sale removes the confirmation order's legal effect. Where the sale is ultimately set aside, the purchaser is treated as never having acquired an interest capable of transfer or relinquishment. Accordingly, an amount received under a compromise connected with setting aside the auction sale is not consideration for transfer of a capital asset and is not taxable as long-term capital gain. A substance-over-form approach cannot disregard the legal consequences of the court proceedings. Case-Laws Income Tax Fri, 14 Apr 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38094