Manning v. Gagne

McLELLAN, District Judge.

This appeal of the plaintiffs from a judgment for the defendant comes here with the District Judge’s findings of fact, rulings of law and a transcript of the evidence. The crucial question is whether the finding that two transfers of stock by a taxpayer to his son, while in form sales, were in fact gifts, should stand. If sales, the taxpayer was entitled to a tax deduction. If gifts, no such deduction'was allowable, and the action can not be maintained. The trial was without jury, and in such cases, the “substantial evidence” rule no longer applies. By virtue of the…