Commissioner of Internal Revenue v. Bishop Trust Co.

WILBUR, Circuit Judge.

Respondent is executor of the estate of John A. McCandless, deceased. Final distribution was made to respondent as testamentary trustee of the residue of the estate, including $20,504.58 received by the executor as income during the taxable year in which distribution was made. The executor, purporting to act under 26 U.S.C.A. Int.Rev.Code, § 162(c), deducted such income so distributed in returning the income of the estate for taxation. The Commissioner assessed a deficiency by reason thereof. On the executor’s petition for redetermination the Board of Tax Appeals (now…