Gardner-Denver Co. v. Commissioner of Internal Rev.

ALSCHULER, Circuit Judge.

Petitioner challenges' the order of the Board of Tax Appeals determining its income tax for the taxable year 1928.

In 1923, and in some of the subsequent years, two corporations to which petitioner subsequently succeeded, and whose obligations it assumed, submitted to certain of their employees propositions to sell to them shares of stock in the corporations at specified prices, which were then approximately their market value. There was some difference in details of the propositions, of no materiality here. The propositions were, in substance, that the accepting…