Bush Brothers and Company v. Commissioner of Internal Revenue

GEORGE CLIFTON EDWARDS, Jr., Chief Judge.

This case is an appeal from a divided Tax Court. 1 In an original and a concurring opinion (with five judges dissenting), the Tax Court held that certain dividends in kind represented by bills of sale for quantities of navy beans issued to all the shareholders of this closely held family corpora tion, and in most instances promptly sold, resulted in income to the corporation declaring , the dividends, as well as to the stockholders who received them. Judge Bruce, who wrote the opinion for the court, set out the facts as follows:

Petitioner Bush Bros. &…