Century Wood Preserving Co. v. Commissioner of Int. Rev.

DAVIS, Circuit Judge.

This petition is concerned with the income tax liability of the Century Wood Preserving Company, the petitioner, for certain of its affiliates during a period of the year 1930. Prior to 1930, these affiliated companies had obtained policies of insurance on the lives of some of its officers. During the taxable period involved, these officers discontinued their connection with the affiliates and purchased the insurance policies from the corporations at the cash surrender value of the policies, or a total of $57,646.57. From 1919 to 1930, the corporations paid premiums on…