Davis Regulator Co. v. Commissioner

1. For many years petitioner had carried on a manufacturing business in a building held under lease. Under threat of condemnation by a railway company the petitioner sold its leasehold to it. Being unable to find a building suitable for its business in the same locality, it forthwith and within the taxable year used a part of the money received from the railway company for the construction, upon land owned by it, of a building. It moved its machinery and equipment to the new building and conducted therein the same manufacturing business formerly carried on in the leased building. Held, an…