Blalock v. Allen

Appellants each sued in the District Court to recover an income tax alleged to have been illegally exacted for the year 1939. The judge trying the consolidated cases without a jury found as a fact that the inclusion that year of A. O. Blalock as a part *928ner of appellants’ firm* was not genuine but merely formal, and as a matter of law he was not a partner for income tax purposes, so that the net income of the partnership was taxable as the income of appellants only. The question is whether the evidence authorizes these conclusions.

The firm, engaged in selling road-building machinery to State…