National Home Owners Service Corp. v. Commissioner
United States Board of Tax Appeals
GAIN AND LOSS; CORPORATION DEALING IN ITS OWN STOCK. - A regulation of the Commissioner provided that a corporation realizes no gain and sustains no loss from purchases and sales of its own stock. It was given the force of law through repeated reenactments by Congress of the definition of gross income.
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GAIN AND LOSS; CORPORATION DEALING IN ITS OWN STOCK. - A regulation of the Commissioner provided that a corporation realizes no gain and sustains no loss from purchases and sales of its own stock. It was given the force of law through repeated reenactments by Congress of the definition of gross income. The Commissioner changed the regulation by a Treasury decision dated one day prior to the enactment of the Revenue Act of 1934. Held, that the Treasury decision is not applicable and the petitioner realized no gain from sales of its own stock in 1934 and 1935.
1Opinion of the Court
*755OPINION.
Murdock :
The first question is whether the petitioner realized any gain from the transactions in 1934 and 1935 whereby it received $100 per unit for units consisting of one class A share and seven class B shares of its own stock. The Supreme Court recently reviewed this question in Commissioner v. Reynolds Tobacco Co., 306 U. S. 110, affirming 97 Fed. (2d) 302, which reversed 35 B. T. A. 949. See also First Chrold Corporation v. Commissioner, 306 U. S. 117, reversing 97 Fed. (2d) 22, which had affirmed an unpublished decision of the Board. The Court stated in the Reynolds case that…
2Cases cited2 opinions
- Helvering v. R. J. Reynolds Tobacco Co.Supreme Court of the United States · 1939
- First Chrold Corp. v. CommissionerSupreme Court of the United States · 1939
3Cited by9 opinions
- COMMISSION OF INT. REV. v. Air Reduction Co.Court of Appeals for the Second Circuit · 1942
- Investment Corp. v. United StatesDistrict Court, E.D. Pennsylvania · 1941
- Brown Shoe Co. v. CommissionerUnited States Board of Tax Appeals · 1941
- COMMISSION OF INT. REV. v. Air Reduction Co.Court of Appeals for the Second Circuit · 1942
- Edison Bros. Stores, Inc. v. CommissionerUnited States Board of Tax Appeals · 1941
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