HOUSTON NATURAL GAS CORPORATION v. COMMISSIONER

Docket No. 10995.

9 T.C. 570 (1947)

HOUSTON NATURAL GAS CORPORATION (TEXAS) SUCCESSOR TO HOUSTON NATURAL GAS CORPORATION (DELAWARE), PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.

United States Tax Court.

Promulgated October 3, 1947.


Attorney(s) appearing for the Case

John P. Lipscomb, Jr., Esq., for the petitioner.

J. Marvin Kelley, Esq., for the respondent.


The Commissioner determined petitioner liable for a deficiency of $75,201.08 in the 1940 income tax of a Delaware corporation which had transferred all its assets to petitioner. In computing the deficiency, the Commissioner treated as taxable gain the difference between the cost of bonds which the Delaware corporation acquired from its subsidiaries and the face amount of such bonds which it still owned when the subsidiaries transferred all their assets to the parent and dissolved...

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