Kellogg

The Commissioner seeks a review of a redetermination by the Board of Tax Appeals of a deficiency determined by him of the tax due on income of F. W. Kellogg, 1 hereafter called taxpayer, for the tax year 1935.

Taxpayer’s petition to the Board for the redetermination of the deficiency was in the usual form setting forth the deficiency letter of the Commissioner and his exceptions to the Commissioner’s determination. It admits that there was income taxable to the amount of $6,846.31, but complains that a deficiency assessment of an additional $5,776.89 was erroneously made. Taxpayer complained that this deficiency was due to a finding by the Commissioner overvaluing the cancellation of an obligation of the taxpayer to pay, at his death, to the Kellogg Investment Company, a corporation, without interest, the sum of $43,-533.60, the amount of premiums on a policy insuring taxpayer’s life which the corporation had paid. It is not claimed that there is fraud or collusion or want of consideration for the absence of interest on the premiums advanced. On the contrary, it appears that a part of the consideration was the assumption by taxpayer of a $20,-000 obligation of another debtor of…