Peoples Finance & Thrift Co. v. Commissioner of Internal Revenue

We are of opinion the Tax Court correctly held that the amounts received by petitioner under certain health and accident insurance policies transferred to it for value constitute taxable income, and that they do not come within the purview of the exemption contained in Section 22 (b) (5) of the Internal Revenue Code, Title 26 U.S.C.A. § 22(b) (5).

We find no merit in the contention that because the amounts involved were “received through accident or health insurance” within the language of the statute, they must therefore -be considered as “Exclusions from gross income”. Such a construction…