Co-Operative Oil Ass'n v. Commissioner of Internal Revenue

HANEY, Circuit Judge.

The question presented by the petition to review a decision of the Board of Tax Appeals involves the right to deduct, as a liability to the members of a cooperative association, amounts earned but not distributed to such members.

Petitioner was incorporated in 1933 as a non-profit cooperative association under the laws of Idaho, and deals in petroleum products and auto supplies. Idaho Code Ann. § 22-2002, relating to such associations provides: “Associations organized hereunder shall be deemed non-profit, inasmuch as they are not organized to make profits for themselves,…