Welch

This is an aetiozz to recover an income tax-paid for the calendar year 1928. The tax. *631 was assessed and collected upon the theory that the appellant was an association within the meaning of section 701 (a) (2) of the Revenue Act of 1928, 26 USCA § 2701 (a) (2). The facts were stipulated in the trial court, and upon this stipulation the court made findings as follows:

“1. H. II. Cotton, who had been engaged in the real estate business in and around the city of Los Angeles, California, for a great many years, entered into a contract with the Rodeo Land and Water Company to purchase a tract of land comprising approximately 190 acres, for tho sum of $242,311.00. The purchase contract was transferred to the Heilman Commercial Trust & Savings Bank as trustee, and tho trust was designated 123.

“II. One C. C. C. Tatum desired to purchase a portion of the land involved in Trust 123 for the purpose of subdivision and sale and interested nineteen other persons, including H. IE. Cotton, and caused the Merchants Trust Company to enter into a contract to purchase approximately 136% acres of the land from the Heilman Commercial Trust & Savings Bank for the sum of $320,785.00. H. H. Cotton,…