Graff v. Commissioner of Internal Revenue

SPARKS, Circuit Judge.

Petitioner seeks to review a decision of the Board of Tax Appeals, which found a deficiency of $4,761.09 in his income tax for the year 1935.

The only question presented is whether the capital gains which were added to the corpus of a trust in 1935 were taxable to the trustees under Section 161, 1 or to the settlor under Sections 166 and 167 2 of the Revenue Act of 1934, 26 U.S.C.A.Int.Rev. Acts, pages 725, 727. The Board held the latter sections applicable, and from that decision this appeal is prosecuted.

The facts are not disputed. On September 26, 1930, petitioner…