Toor v. Westover. Toor v. Westover

This is a family partnership case. These cases represent a phase in the history of income tax litigation which reflects the increasing efforts on the part of taxpayers to distribute the impact of taxation among members of a close family group without substantially altering control over the income, producing property and the attempts of Congress and the Commissioner of Internal Revenue to insure that income from property will be taxable to the substantial owner of that property and income from personal services will be taxable to the person rendering those services.

The present appeal is taken from a determination by the District Court that a pártnership in which Mr. Toor, hereinafter referred to as appellant, was general part-; ner and the Beverly Hills National Bank and Trust Company, as trustee of two trusts, the limited partner, was not valid for income tax purposes during the years 1943, 1944 and 1945. It was held that the entire income of the business was properly assessed by the Commissioner of Internal Revenue to appellant and 'his wife on a community basis.

The District Court, in rendering its •decision, was fully aware of the decision of the Supreme Court of the United…