Trenton Cotton Oil Co. v. COMMISSIONER OF INT. REVENUE

HAMILTON, Circuit Judge.

Respondent on rehearing, urges that in no event does Section 118 of the Internal Revenue Code, 26 U.S.C.A. Int.Rev.Code, § 118, apply to the losses on the sales of cotton futures by petitioner, because in its switching operations, petitioner did not sell and repurchase substantially identical property.

The factual base for respondent’s contention is (a) that in each switching transaction, the date of the delivery of the oil in the contract purchased was later than in the contract sold, thu's the contracts matured at different times; (b) that in some instances when one…