Frank Scofield, Collector of Internal Revenue v. San Antonio Transit Company

Further consideration has convinced me that the taxpayer corporation acquired the assets of Smith Brothers Properties Company in a nontaxable reorganization as defined in Section 112(g) (1) (B) of the Revenue Act of 1936 (quoted in footnote 2 to the main opinion). The appellant collector insisted that there was no such reorganization upon the following grounds: (A) A continuity of interest, which is requisite to a reorganization, was lacking; (B) The taxpayer did not acquire “substantially all the properties” of the alleged transferor; (C) The taxpayer did not acquire the property of the…