CORPORATION DE VENTAS, ETC. v. COMMISSIONER OF INT. REV.

No. 115.

130 F.2d 141 (1942)

CORPORACION DE VENTAS DE SALITRE Y YODA DE CHILE v. COMMISSIONER OF INTERNAL REVENUE.

Circuit Court of Appeals, Second Circuit.

July 17, 1942.


Attorney(s) appearing for the Case

George E. Cleary, of New York City, for petitioner.

Samuel O. Clark, Jr., Asst. Atty. Gen., and J. Louis Monarch and Morton K. Rothschild, Sp. Assts. to the Atty. Gen., for respondent.

Before L. HAND, SWAN, and CHASE, Circuit Judges.


SWAN, Circuit Judge.

The question presented is whether a Chilean corporation realized taxable income by purchasing in the United States some of its own debenture bonds at less than their face value. The taxpayer contends, first, that the unusual circumstances under which its debentures were issued, and the limitations upon liability which they contained precluded its realization of gain by their purchase; second, that if gain was realized, it was not "income from...

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