Commissioner of Internal Revenue v. Rollins Burdick Hunter Co.

LINDLEY, District Judge.

The Commissioner of Internal Revenue seeks to reverse a decision of the Tax Court that he improperly levied deficiencies in the respondent taxpayer’s income taxes for 1942 and 1943, because of the latter’s failure to- include as income the gain upon sales of its treasury stock to its employees over and above the cost of such shares when purchased from a former stockholder. The essential stipulated facts are as follows: Respondent is engaged in insurance brokerage. Its prosperity is dependent primarily upon the personal efforts and abilities of the persons carrying on…