Commissioner of Internal Rev. v. Food Industries

BIGGS, Circuit Judge.

This proceeding1 comes before us upon the petition of the Commissioner of Internal Revenue to review a decision of the United States Board of Tax Appeals finding no deficiency in income tax paid by the respondent for the calendar year 1931. Petitioner seeks to assess additional tax in the sum of $30,787.50. Briefly the facts are as follows.

At the beginning of the year 1931, General Baking Company, a New York corporation, operated a number of baking plants in various parts of the United States, The company had outstanding 90,775 shares of preferred stock and 429,719 shares…