Díaz Danuz v. Secretary of the Treasury

Mr. Justice Dávila

delivered the opinion of the Court.

Section 22(b)(3) of the 1954 Income Tax Act — 13 L.P.R.A. § 3022(b) (3) — provides that there shall not be included in gross income and shall be exempt from taxation “the value of the property acquired by gift, bequest, devise or inheritance. There shall not be excluded from gross income under this paragraph the income from such property, or, in case the gift, bequest, devise, or inheritance is of income from property, the amount of such income.” This appeal has been reduced to a determination of whether, according to the provisions in the…