Perata

This court is- asked to review a decision of the Board of Tax Appeals determining a deficiency in the income tax of petitioner, by the petition presented.

The Italo Petroleum Corporation of America, hereinafter referred to as Italo, in 1928 entered into agreements with certain oil companies to purchase the assets of such companies. These agreements were entered into either in the name of Italo or one Myers, its agent. In the aggregate, delivery to the oil companies of 1.500.000 shares of preferred stock of Italo, 4.500.000 shares of common stock of Italo, and $3,433,228.53 cash, was required as the consideration for the transfer of the properties of the oil companies. Italo did not have available the cash payments re-i quired at this time.

On July 12, 1928, petitioner and others executed a syndicate agreement. After recital of the above facts, the agreement established a syndicate and created a manager thereof; provided that the syndicate fund would be raised by subscriptions thereto, the total of which would constitute the fund. It was further provided that the manager would procure from Italo an assignment of the contracts between Italo and the oil companies; that he would…