Merchants Nat. Bank of Mobile v. Commissioner of Internal Revenue

STRUM, Circuit Judge.

This is a petition to review a decision of the Tax Court which sustained deficiency assessments in petitioner’s income taxes for the years 1943 and 1944.

The 1943 deficiency arose as follows: Petitioner is a national bank. In 1934, it owned all the stock of Merchants Securities Corporation, which dealt in securities: As the Banking Act of 1933, 12 U.S.C.A. § 377, prohibited such affiliation after June 16, 1934, liquidation of the Securities Corporation was begun May 19, 1934, the bank acting as liquidating trustee.

The Securities Corporation owned all the capital stock of…