Commissioner of Internal Revenue v. George M. Jones Co.

MARTIN, Circuit Judge.

Although rulings upon several separate transactions were made by the Tax Court in a redetermination of deficiencies in the income tax of the respondent for the year 1934, only one issue is presented by this *359petition for review. That issue is whether, in determining the gain of the. respondent corporation from its redemption in 1934 of the preferred stock of a wholly owned subsidiary corporation, the original basis of the taxpayer for the stock should be adjusted, under Section 113(b) of the Revenue Act of 1934, 26 U.S.C.A. Int.Rev.Acts page 700, and Article 113(b)-1 of…