Commissioner of Internal Revenue v. Chandler

This appeal involves income taxes for the year 1929 upon ari order of redeter-mination of July 26, 1935, pursuant to the provisions of the Revenue Act of 1926, ch. 27, 44 Stat. 9 , 109, 110, §§ 1001-1003, as amended by section 1101 'of the Revenue Act of 1932, ch. 209, 47 Stat. 169 , 286.

The findings of the Board of Tax Appeals are conclusive if sustained by substantial evidence. Phillips v. Commissioner, 283 U.S. 589 , 51 S.Ct. 608 , 75 L. Ed. 1289 ; Helvering v. Rankin, 295 U.S. 123 , 55 S.Ct. 732 , 79 L.Ed. 1343 ; American Savings Bank & Trust Co. v. Burnet (C.C.A.9) 45 F.(2d) 548 ; Winnett v. Helvering, 68 F.(2d) 614, 615 (C.C.A.9), and Mississippi Valley Barge Line Co. v. United States, 292 U.S. 282 -287, 54 S.Ct. 692 -694, 78 L.Ed. 1260 .

The Board, supra, found that Harry Chandler in 1916 incorporated the Chan-dis Securities Corporation with a capital stock of 500 shares, $1,000 per share par value, in payment of which he transferred designated real and personal property. The stock was issued 200 shares to his wife, the respondent, and 280 shares to his children. Other properties were later transferred to the company in consideration for which the company issued its…