National Leather & Shoe Finders Ass'n v. Commissioner

OPINION.

Arundell, Judge:

Section 101 (7) of the Internal Eevenue Code provides for the exemption from taxation of “Business leagues * * * not organized for profit and no part of the net earnings of which inures to the benefit of any private shareholder or individual.” Under the regulations (Eegulations 111, §29.101 (7)-l, and corresponding provisions of prior regulations), to be exempt a business league must be an association of persons with common business interests; its purpose must be to promote the common interest and not to engage in a regular business of a kind, ordinarily carried on for…