UNITED STATES v. STERN BROS. & CO.

No. 12521.

136 F.2d 488 (1943)

UNITED STATES v. STERN BROS. & CO.

Circuit Court of Appeals, Eighth Circuit.

June 24, 1943.


Attorney(s) appearing for the Case

S. Dee Hanson, Sp. Asst. to Atty. Gen. (Samuel O. Clark, Jr., Asst. Atty. Gen., Sewall Key and Helen R. Carloss, Sp. Assts. to Atty. Gen., Maurice M. Milligan, U. S. Atty., of Kansas City, Mo., and Richard H. Musser, Asst. U. S. Atty., of Holden, Mo., on the brief), for appellant.

John H. McEvers and Ryland, Stinson, Mag & Thomson, all of Kansas City, Mo., for appellee.

Before THOMAS and JOHNSEN, Circuit Judges, and VOGEL, District Judge.


THOMAS, Circuit Judge.

This is an appeal by the United States from a judgment in favor of Stern Brothers & Co., a corporation, in a suit to recover income taxes claimed to have been erroneously assessed by the Commissioner of Internal Revenue for the taxable year 1936. Stern Bros. & Co. v. United States, D.C., 45 F.Supp. 583.

On November 9, 1934, the taxpayer, in order to accommodate one of its stockholders, purchased...

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