Buscaglia v. Tax Court of Puerto Rico

Mr. Justice Todd, Jr.,

delivered the opinion of the court.

Ochoa Fertilizer Corporation (hereinafter referred to as Ochoa) organized in 1937 a subsidiary corporation known as Puerto Rico Phosphate and Acid Works, Inc. (hereinafter called P. R. Phosphate), to be engaged in the manufacture of sulphuric acid and superphosphate. This company emitted common shares, and issued notes which passed to Ochoa, in exchange for machinery and equipment of the plant which Ochoa had acquired for the manufacture and processing of said products. The P. R. Phosphate applied to the Public Service Commission for a…