Western Massachusetts Theatres, Inc. v. Commissioner

OPINION.

Van Fossan, Judge:

The sole question here presented involves the basis properly to be ascribed to the G. B. properties in the hands of petitioner for depreciation and invested capital purposes. Specifically, the parties are at issue with respect to whether the transaction by which such properties were acquired was one to which the nonrecognition provisions of section 112 (b) (10) of the Internal Revenue Code of 1939 4 apply so as to make petitioner’s basis therefor the same as it would be in the hands of Olympia pursuant to section 113 (a) (22) of the 1939 Code.5

In 1933, Olympia was in…