Cluett, Peabody & Co. v. Commissioner
United States Tax Court
The disposition to its shareholders of treasury shares among new shares in a readjustment of the corporation's capital, which treasury shares had been acquired in a prior year as a step in an employee profit-sharing plan which had not been carried out, held under the circumstances not to be a transaction the real nature of which was similar to a sale of the shares of another corporation, and the corporation did not realize a taxable gain. Regulations 94, art. 22 (a)-16.
1Opinion of the Court
OPINION.
SteRnhagen, Judge:
The excess ($206,369.57) over cost ($56,607.05) received by the taxpayer corporation for 12.303 shares among the 112,974 shares disposed of by it in 1937 to subscribing shareholders is treated by the Commissioner as taxable gain, and this the taxpayer challenges as- contrary to Regulations 94. article 22 (a)-16. Both parties recognize that this article of the regulations is controlling. Cf. Helvering v. Reynolds Tobacco Co., 306 U. S. 110; Commissioner v. Air Reduction Co., 130 Fed. (2d) 145; Dr. Pepper Bottling Co. of Miss. 1 T. C. 80. The question for decision is…
2Cases cited3 opinions
- Helvering v. R. J. Reynolds Tobacco Co.Supreme Court of the United States · 1939
- Dr. Pepper Bottling Co. v. CommissionerUnited States Tax Court · 1942
- Brockman Oil Well Cementing Co. v. CommissionerUnited States Tax Court · 1943
3Cited by25 opinions
- Commissioner of Internal Revenue v. Landers CorpCourt of Appeals for the Sixth Circuit · 1954
- Commissioner of Internal Revenue v. H. W. Porter & Co., Inc.Court of Appeals for the Third Circuit · 1951
- Rollins Burdick Hunter Co. v. CommissionerUnited States Tax Court · 1947
- Batten, Barton, Durstine & Osborn, Inc. v. CommissionerUnited States Tax Court · 1947
- Anderson, Clayton & Co. v. United StatesUnited States Court of Claims · 1954
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