COMMISSIONER OF INTERNAL REVENUE v. KAY MFG. CORP.

No. 366.

122 F.2d 443 (1941)

COMMISSIONER OF INTERNAL REVENUE v. KAY MFG. CORPORATION.

Circuit Court of Appeals, Second Circuit.

August 5, 1941.


Attorney(s) appearing for the Case

Samuel O. Clark, Jr., Asst. Atty. Gen., and Sewall Key, Lee A. Jackson, and Arthur A. Armstrong, Sp. Assts. to Atty. Gen., for petitioner.

Benjamin Mahler, of New York City, for respondent.

Before L. HAND, SWAN, and AUGUSTUS N. HAND, Circuit Judges.


SWAN, Circuit Judge.

There is no dispute as to the facts, all of which were stipulated. The taxpayer, Kay Manufacturing Corporation, is a Massachusetts corporation whose capital stock was owned by a New York corporation of the same name. During the taxable year in suit the taxpayer distributed all its assets in complete liquidation, and was thereafter dissolved. Such distribution was a transaction upon which no gain or loss to the parent corporation is recognized...

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