United States v. Archer-Daniels-Midland Company, a Corporation

GARDNER, Chief Judge.

Taxpayer, a Delaware corporation, on June 20, 1949, pursuant to resolution of its board of directors transferred from its capital surplus account the amount of $1,269,706.49 and from its earned surplus account the amount of $21,688,254.-55 to its capital stock account, which transfer resulted in making its capital stock account $32,694,960. It issued no additional stock or shares to its stockholders. Following this transaction and on or about the 29th day of August, 1951, the Commissioner of Internal Revenue purporting to act under authority conferred by Section 1802(a)…