Newman v. Commissioner of Internal Revenue

PHILLIPS, Circuit Judge.

The petitioner-earnestly contends that he did not receive stock which had a “fair market value” for the reason that he eould not sell such stock to any one in 1920 without violating his contract with King and Wood. There is a heavy burden on the taxpayer “of proving that the Commissioner’s action was plainly arbitrary.” Lucas v. Kansas City Structural Steel Co. (April 14, 1930) 281 U. S. 264, 50 S. Ct. 263, 266, 74 L. Ed. 848. See, also, Lucas v. American Code Co., 280 U. S. 445, 50 S. Ct. 202, 74 L. Ed. 538, and Williamsport Wire Rope Co. v. United States, 277 U. S.…