Petitfils

This petition involves an asserted deficiency in petitioner’s incojme tax for the year 1923, taxable under the Revenue Act of 1921, § 202 ( 42 Stat. 227 , 229), as amended by the Act of March 4, 1923 (42 Stat. 1560 ).

Prom 1914 to 1923 petitioner, as an individual, operated a café and confectionery business in Los Angeles, Cal., under the name of “Petitfils.” In 1919 he procured a Leu-year lease on the premises in which the business was conducted, which lease provided that it could not be assigned without the written consent of the lessor. In 1921 or 1922 he *310 began to use the name “Petitfils Confiserie” as a trade-mark on candy boxes, and placed a sign with that name on it over the door of his establishment. In June, 1922, in consideration of an increased rental, petitioner secured the consent of his lessor to an assignment of the lease to Petitfils Confiserie, Inc., a corporation which he contemplated organizing to take over his business.

May 4, 1923, petitioner caused to be filed in the office of the secretary of state of California articles of incorporation of W. M. Petitfils, Inc. The articles provided for a capital stock of $500,000, divided into 5,000 shares, and named…