Brown v. Commissioner of Internal Revenue

BORAH, Circuit Judge.

This is a petition for review of a decision of the Tax Court sustaining a deficiency in petitioner’s income tax for the calendar year 1944 in the amount of $6,415.54.

The question for decision is whether the Tax Court erred in holding that certain oil royalties which were paid to the taxpayer in 1944 were not tax-exempt income under the provisions of Section 22(b) (3) of the Internal Revenue Code, 26 U.S.C.A. § 22 (b) (3). The facts are not in dispute. They were all stipulated in the court below, and for present purposes may be summarized as follows:

The petitioner, a…