Commissioner of Internal Revenue v. Gilmore's Estate

GOODRICH, Circuit Judge.

Under § 112(b) (3) of the Revenue Act of 1934, 1 under which this litigation arises, no gain or loss is recognized “if stock or securities in a corporation a party to a reorganization are, in pursuance of the plan of reorganization, exchanged solely for stock or securities in such corporation or in another corporation a party to the reorganization.” One of the given definitions of a “reorganization” is a “statutory merger or consolidation”. 2 This appeal presents two questions: first, whether the transaction, hereinafter described, between a holding company and…