Commissioner of Corporations & Taxation v. Newton

These are appeals by the commissioner of corporations and taxation from a decision of the Appellate Tax Board granting abatements of additional taxes for 1946 assessed on income alleged to have been received by the taxpayers during 1945.

Newton and one Washburn had conducted a sand and gravel business, as partners, for a number of years prior to August 31, 1945, when the firm was dissolved. Washburn sold a fourth interest to Newton for $62,500 and his remaining fourth interest to Lindholm for the same price. Newton and Lindholm in August, 1945, organized a corporation to *410succeed to the…