Busch v. Commissioner

OPINION.

KeRn, Judge:

The principal issue presented, in these proceedings is whether the Commissioner erred in his determination that the income from certain shares of stock held by the several trusts involved here, and applied by the trustees to the payment of the indebtedness for which the shares had been pledged as security prior to their transfer to the trusts, was, under the facts, taxable to the beneficiaries rather than to the trusts, as petitioners contend.

The secondary question, which will be resolved by our decision of the primary issue, concerns the validity of the penalty assessed…