Bankers Farm Mortgage Co. v. Commissioner

OPINION.

Leech, Judge:

The facts here disclose a situation similiar in all essential respects to that in the recent case of Palm Springs Holding Corporation v. Commissioner, 315. U. S. 185. There the Supreme Court held that a reorganization resulted under section 112 (i) of the Revenue Act of 1932, which is here controlling, and that basis of the assets to the new company was the cost basis of the transferor under section 113 (a) (7) of that act.

Respondent, however, contends that the present case may be distinguished and is not controlled by the cited decision. He calls attention to the fact…