United States v. Knox-Powell-Stockton Co.

DENMAN, Circuit Judge.

This is an appeal from an order of the District Court confirming the order of a referee in bankruptcy which rejected a claim of the United States for income taxes assessed against the bankrupt corporation for the year 1930.

The bankrupt corporation, hereinafter called the taxpayer, was, during the times material to be considered, engaged in drilling oil wells upon lands situate in the city of Los Angeles, Cal., and in selling oil and gas therefrom. As a means of financing its operations, it entered into certain agreements evidenced in transferable certificates, each in…