Monarch Electric & Wire Co. v. Com'r of Internal Revenue

SPARKS, Circuit Judge.

This is a petition by Monarch Electric & Wire Company to review an order of the Board of Tax Appeals entered August 14, 1928, and involves income and excess profits taxes for the year 1920, in the amount of $6,-104.03.

The uncontroverted facts relating to this issue are as follows:

In 1906, one Nathan Deutseh owned the entire capital stock of the Monarch Electric & Wire Company, an Illinois corporation organized in 1902 (not the petitioner herein). In the latter part of 1906, Deutseh sold a 16 per cent, interest in this company to each of the three Schwab brothers, L. S.…