GRUBB, District Judge.
This is an action for the recovery of federal income taxes alleged to have been erroneously collected from plaintiff for its fiscal year ending October 31, 1955. The court has jurisdiction under § 1346, Title 28 U.S.C.A. The issue for decision by the court is whether plaintiff must recognize a taxable gain as a result of a "plan of reorganization" carried out on October 31, 1955, between plaintiff and Liberty Foundry Corporation.
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