Henry David and Wife, Grace David v. Robert L. Phinney, District Director of Internal Revenue

RIVES, Circuit Judge:

The District Director of Internal Revenue made a deficiency assessment against the taxpayers1 for income taxes for the year 1956 in the sum of $49,566.99 plus interest. The taxpayers paid the amount of said assessment and, their claim for refund having been denied, filed this suit. The complaint alleged that “in February 1956, Mississippi River Fuel Corporation paid Henry David $629,226.75 for the 1,000 shares of Milwhite Mud Sales Corn-*373pany stock, which he had owned since 1952. That the sale thereof constituted a long-term capital gain and as such was taxable only as a…