Commissioner v. Court Holding Co., 324 U.S. 331 (1934)

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Commissioner of Internal Revenue v. Court Holding Co.

No. 581

Argued February 26, 1945
Decided March 12, 1945
324 U.S. 331

CERTIORARI TO THE CIRCUIT COURT OF APPEALS

FOR THE FIFTH CIRCUIT

Syllabus

1. There was evidence to support the finding of the Tax Court that the transaction in question -- formally a sale by stockholders of property conveyed to them as a "liquidating dividend" -- was a sale by the corporation, rather than by the stockholders, which finding must therefore be accepted by the courts, and the Tax Court’s conclusion that, under § 22 of the Internal Revenue Code, the corporation was taxable on the gain from the sale is sustained. P. 333.

2. That the corporation never executed a written agreement, and that an oral agreement for the sale of realty was unenforceable under the state law, does not require a different result in view of the Tax Court’s finding that the executed sale was in substance a sale by the corporation. P. 334.

143 F.2d 823, reversed.

Certiorari, 323 U.S. 702, to review the reversal of a decision of the Tax Court, 2 T.C. 531, sustaining the Commissioner’s determination of a deficiency in income tax.