Maloney

Appellees are the trustees of a trust created by the will of Sarah E. Carrier, referred to hereafter as the decedent. They sued appellant, the collector of internal revenue for the district of Oregon, to recover taxes alleged to have been illegally exacted. These were taxes upon 15/20ths of the income of decedent’s estate for the taxable years 1940, 1941 and 1942, and paid By the administratrices during the course of administration.

The statute involved is 26 U.S.C.A. § 162 (a). So far as material it provides that the net income of an estate shall Be computed on the same basis as in the case of an individual, except that there shall be allowed as a deduction “any part of the gross income, without limitation, which pursuant to. the terms of the will * * * creating the trust, is during the taxable year paid or permanently set aSide for the purposes and in the manner specified in section 23(o), or is to be used exclusively for religious, charitable, * * * or educational purposes * * * ”

The trial court held, in effect, that the entire income of the decedent’s estate was during the years in question deductible under the terms of this statute.

The facts of the case are not in…