Society Brand Clothes, Inc. v. Commissioner

OPINION.

Black, Judge:

As has been mentioned in our preliminary statement, four issues are presented in this proceeding.

The first issue relates to the transaction whereby petitioner sold 24,000 shares of its treasury common stock in December 1943, to Raye Decker for $195,260.66 under the terms of an option. On its tax returns for the taxable year petitioner reported no income from the transaction, but on brief it concedes that a taxable long term capital gain of $61,822.11 was realized.1 In the deficiency notice respondent determined that petitioner realized a long term capital gain of…