Independent Oil Co. v. Commissioner
United States Board of Tax Appeals
Petitioner, a corporation, exchanged assets for all the stock of a new corporation and, pursuant to a plan of reorganization, exchanged 75 percent of that stock for stock of a third corporation. Held, that these transactions constituted a nontaxable reorganization.
1Opinion of the Court
*36OPINION.
ARUNDell :
Summarizing the facts, they are that in 1930 the petitioner transferred assets to a newly organized corporation for all of its stock, and then exchanged 75 percent of the stock so acquired for stock of Vacuum plus a so-called obligation of Vacuum. On the first exchange the petitioner also received income certificates of the new corporation, but the parties appear to be agreed that these were without value.
In his original determination in this proceeding the resjmndent held that the transfer by petitioner of 26,250 shares of stock of the new corporation to Vacuum was a sale…
2Cases cited3 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Helvering v. Minnesota Tea Co.Supreme Court of the United States · 1935
- John A. Nelson Co. v. HelveringSupreme Court of the United States · 1935
3Cited by3 opinions
- Electrical Securities Corp. v. Commissioner of Int. Rev.Court of Appeals for the Second Circuit · 1937
- Commissioner of Internal Revenue v. First Nat. BankCourt of Appeals for the Third Circuit · 1939
- Independent Oil Co. v. CommissionerUnited States Board of Tax Appeals · 1936