Vale v. duPont

*258Wolcott, Chancellor, delivering the opinion of the Court:

The assignments of error raise two questions which will be stated and answered as follows:

1. Was the exchange of La France shares for Postum shares a taxable transaction?

This question is to be answered in the light of the income' tax statute of this State as the same existed in 1928. The pertinent provision of the statute is found in Section 1 of Article 1, Chapter 9, 32 Delaware Laws, ap*259proved March 29, 1921, wherein net income is defined. The provision is as follows:

“The phrase ‘net income’ means the aggregate of all gains, profits,…