United States Tax Court December 30, 1955, Docket No. 52987 (Zack v. Commissioner)

lead-opinion

OPINION.

Murdock, Judge:

The Commissioner takes the position that the arrangement between Zack, his two sons, and his son-in-law, whereby they were to share in the one-third interest in the bomb hoists here involved on a 40-20-20-20 percentage basis, was a sham and, accordingly, he has taxed one-third of the profits from the sale of the hoists to the petitioners as ordinary income