Mutual Savings Life Insurance Co., Plaintiff-Appellee-Cross v. United States of America, Defendant-Appellant-Cross

RONEY, Circuit Judge:

This tax refund suit involves the tax treatment of a life insurance company’s acquisition of two blocks of life insurance policies from other insurance companies in reinsurance transactions. Trying the case without a jury on a stipulation of facts and the testimony of one witness, the District Court, following the examples in the Treasury Regulations which it held dictated divergent results, found in favor of the Government on one transaction and in favor of the taxpayer on the slightly different second transaction. Both parties appeal on the ground that the two…