Gensinger

This is a petition to review a decision of the Tax Court holding that the taxpayer, E. D. Gensinger, is liable as transferee of the assets of Columbia River Orchards, Inc., herein the corporation, for deficiencies in income taxes, excess profits taxes and declared value excess profits taxes of that corporation in the aggregate amount of $103,571.06 for the taxable year 1943.

The principal question before us is whether the proceeds of certain sales of fruit in 1943 were income of the corporation. • The taxpayer’s contention is that he sold the fruit after receiving it from the corporation as a liquidating dividend and that the proceeds were therefore not taxable to the corporation.

We shall sketch the facts only in broad outline, as they are fully set out in the Tax Court’s opinion. See 18 T.C. 122 . The taxpayer was the sole shareholder of the Washington corporation except for two qualifying shares held by his wife who was a director. The corporation produced cherries, apricots and peaches on its farm near Wenatchee, Washington. The taxpayer owned some orchard land individually. Both the corporation, and the taxpayer had membership contracts with a local cooperative marketing…